Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chairs meeting to review performance of 7 Regional Rural Banks (RRBs) of the North East Region in Itanagar

RRBs should focus on credit for agriculture, horticulture and allied activities: Smt. Sitharaman

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired a meeting in Itanagar to review performance of 7 Regional Rural Banks of the North East Region covering the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura in Itanagar, Arunachal Pradesh.

Shri M. Nagaraju, Secretary, Department of Financial Services (DFS), Chairpersons of RRBs and sponsor banks (Chairman, SBI and Managing Director, PNB), senior @DFS_India officials, representatives of RBI, NABARD and SIDBI and senior officers of 7 states were also present during the meeting.

During the review meeting, the Union Finance Minister was apprised about the improvement in the financial performance of the RRBs of the Northeast and their technology upgradation ever since the regular review was initiated in 2022.

The Consolidated CRAR of 15% in FY 2024 is at healthy levels and profitability has improved from losses of Rs. 11 crore in FY 2023 to net profit of Rs. 205 crore in FY 2024. The Gross Non-Performing Assets (GNPA) have also improved from 15.6% in FY 2022 to 7.3% in FY 2024.

Given the crucial role of RRBs in supporting the rural economy, Union Finance Minister urged RRBs – with the active support of their sponsor banks – to increase credit disbursement under various Government of India flagship schemes such as MUDRA, PM Vishwakarma, etc. The Minister also said that the focus should be on credit for agriculture, horticulture and allied activities like piggery, goatery, sericulture, fisheries etc. She also directed NABARD to promote FPOs (Farmer Producer Organizations) in the NE region.

The Union Finance Minister also urged stakeholders to hold special State Level Bankers' Committees (SLBCs) meetings involving RRBs to explore the possibility of tapping the potential of horticulture, floriculture, sericulture & animal husbandry in the North Eastern states; resolve the issue of availability of land records for extending Agri credit and; increasing credit for agri-processing units. States were urged to ensure the provision of mobile veterinary units in each district.

During the meeting, Smt. Sitharaman emphasized that every eligible person in the North-East region should get covered under Pradhan Mantri Jan Dhan Yojana (PMJDY).

The Union Finance Minister directed DFSto conduct a meeting withthe Ministry of DoNER and NEC (North Eastern Council) to explore the possibilities for extending credit to ODOP vendors of the states.Smt. Sitharaman also advised that all RRBs must devise suitable MSME products that alignwith MSME activities and leverage their personal and local connect to increase penetration.

RRBs, with necessary support from Sponsor Banks and NABARD, were also directed to open new banking touchpointsin non-coveredareas, especially in the states of Nagaland and Arunachal Pradesh.