Itanagar, Sep 30: Union Finance Minister Nirmala Sitharaman conducted a detailed review of the performance of Regional Rural Banks (RRBs) of the North East Region during a meeting held in Itanagar on Monday.
The meeting aimed at assessing the impact of RRBs in promoting financial inclusion, rural development, and credit flow to agricultural and allied sectors in the NE region covering the 7 states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, official sources said.
The meeting focused on business performance, upgrading digital technology services, and fostering business growth in activities allied to agriculture and MSME sectors, they said.
In the meeting, the Finance Minister directed the RRBs to increase their share in ground level agriculture credit disbursement with special focus on horticulture, floriculture and allied agriculture activities like piggery, goatery, sericulture, fisheries, etc.
Given the crucial role of RRBs in supporting the rural economy, she further 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.
Further, she directed NABARD to promote FPOs (farmer producer organizations) in NE region, while apprising about the Centre’s Krishi Udan Scheme, which provides access to national market for perishable horticulture and floriculture produce of the NE region.
The Finance Minister also directed 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, to resolve the issue of availability of land records for extending agri credit and also for increasing credit for agri-processing units.
The NE States were also urged to ensure provision of mobile veterinary units in each district.
The 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 [Capital to Risk (Weighted) Assets Ratio] 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 and Gross Non-Performing Assets (GNPA) have also improved from 15.6% in FY 2022 to 7.3% in FY 2024.
RRBs with necessary support from Sponsor Banks and NABARD were directed to open new branches in non-covered districts especially in Nagaland and Arunachal Pradesh. Sponsor bank was directed to handhold Nagaland Rural Bank to resolve the network issue for launching internet banking services.
Union Finance Minister also lauded the significant role played by RRBs in financial inclusion in NE region and urged them to continue their efforts towards saturation under Financial Inclusion schemes of Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), etc by achieving respective targets. She stressed that every eligible person in the Northeast should get covered under PMJDY. The Finance Minister also urged states to open Unity-Malls in all NE states which would promote sale of ODOP and other prominent regional products. She also directed DFS to conduct meeting with DoNER and NEC for exploring the possibilities for extending credit to ODOP of the states and opening of Unity malls.
Secretary, Department of Financial Services (DFS), ED, RBI, Chairpersons of RRBs and sponsor banks (Chairman, SBI and Managing Director, PNB) were present. Additional Secretary, DFS, representatives of NABARD and SIDBI, and senior officers of 7 NE states were also present during the meeting.