FM directs Regional Rural Banks to increase share in ground level agriculture credit disbursement

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired a meeting to review performance of 10 Regional Rural Banks of the Southern Region, covering the 5 states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana and UT of Puducherry, in Bengaluru recently. The meeting, with 10 RRBs present, focused on business performance, upgrading digital technology services, and fostering business growth in activities allied to agriculture and micro and small industry. Given the crucial role of RRBs in supporting the rural economy, the Union Finance Minister urged RRBs to increase credit disbursement under various Government of India flagship schemes such as MUDRA, PM Vishwakarma, etc, with the active support of their sponsor banks.

Sitharaman directed RRBs to increase their share in ground level agriculture credit disbursement with special focus on allied agriculture activities like dairy, animal husbandry, fisheries etc, and to take necessary steps to realise the full potential of allied agriculture activities in the region. RRBs and sponsor banks were specially directed to work with respective state government departments to increase credit disbursement to fisheries sector in Kerala and dairying sector in Telangana. Union Finance Minister acknowledged RRBs for the demonstrable improvement in their financial performance and technology upgradation ever since regular review was initiated in 2022. Consolidated CRAR of 17.6% and Gross Non-Performing Assets (GNPA) of 3.94% in FY 2024 are at healthy levels. RRBs in Southern Region have posted consolidated profit of Rs 3,816 crore during FY 2024 which is more than 50% of net consolidated profit of all RRBs combined.

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