Bengaluru, Nov 9 (UNI) Union Finance Minister Nirmala Sitharaman on Saturday directed Southern Regional Rural Banks (RRBs) to intensify credit support for agriculture and MSMEs as part of an ongoing effort to bolster the rural economy and promote financial inclusion.
Chairing a review meeting here, the Finance Minister emphasised the strategic role RRBs play in supporting rural growth through sector-specific credit, especially for agriculture-linked activities.
The meeting, held under the ‘Azadi ka Amrit Mahotsav’ initiative, brought together ten RRBs from Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Telangana, and the Union Territory of Puducherry.
Senior officials, including Union Minister of State for Finance Pankaj Chaudhary and representatives from NABARD, SIDBI, and the RBI, were also present.
Sitharaman called on RRBs to prioritise agriculture-linked lending, encouraging targeted credit distribution in allied sectors such as dairy, animal husbandry, and fisheries.
Specific directives were given to enhance credit for the fisheries sector in Kerala and dairy initiatives in Telangana.
Highlighting the role of RRBs in advancing the Government of India’s flagship programmes like PM MUDRA Yojana and PM Vishwakarma Yojana, she urged the banks to deepen their outreach and lending efforts with support from their sponsor banks.
The Finance Minister also stressed the need for customised credit products for MSMEs, aligned with regional economic clusters. She encouraged RRBs to collaborate with SIDBI on co-lending models and risk-sharing initiatives, enhancing support for MSMEs through digital platforms.
In her address, Sitharaman commended the RRBs for their improved financial standing, with a consolidated profit of Rs 3,816 crore and a strong CRAR of 17.6% for FY 2024.
Technology upgradation was also a key topic, as the Minister urged banks to expand customer-centric digital services like Micro-ATMs, net banking, Video KYC, and IMPS.
Chaudhary highlighted the Prime Minister’s vision for comprehensive financial inclusion. He urged RRBs to focus on targets under financial inclusion schemes such as the Pradhan Mantri Jan Dhan Yojana (PMJDY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), calling for the activation of dormant accounts and broader engagement in these initiatives.
As part of the meeting, Sitharaman solicited feedback from state governments on the proposed amalgamation of RRBs under the ‘One State-One RRB’ framework. This approach is intended to streamline operations and ensure tailored service for each state’s rural financial needs.
The meeting concluded with Sitharaman reiterating the government’s commitment to enhancing rural financial access and fostering a sustainable economic environment for agriculture and MSME sectors across Southern India.
