GG News Bureau
Itanagar, 1st Oct. Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, chaired a meeting in Itanagar on Monday to assess the performance of seven Regional Rural Banks (RRBs) in the Northeast region, which includes Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
The meeting included M. Nagaraju, Secretary of the Department of Financial Services (DFS), chairpersons of RRBs, sponsor banks such as SBI and PNB, and senior officials from the RBI, NABARD, and SIDBI.
During the meeting, Sitharaman was briefed on the positive financial performance of the RRBs since regular reviews began in 2022. Key highlights include a consolidated Capital to Risk-Weighted Assets Ratio (CRAR) of 15% for FY 2024 and a significant turnaround in profitability, from losses of ₹11 crore in FY 2023 to a net profit of ₹205 crore in FY 2024. Additionally, the Gross Non-Performing Assets (GNPA) have improved from 15.6% in FY 2022 to 7.3% in FY 2024.
Highlighting the essential role of RRBs in bolstering the rural economy, the Finance Minister urged them, along with their sponsor banks, to increase credit disbursement for various Government of India flagship schemes, including MUDRA and PM Vishwakarma.
She emphasized the need to focus on credit for agriculture, horticulture, and allied activities such as piggery, goatery, sericulture, and fisheries.
Sitharaman called for special State Level Bankers’ Committee (SLBC) meetings to explore horticulture, floriculture, sericulture, and animal husbandry potentials in the Northeast. She also stressed the importance of resolving land record issues for extending agricultural credit and increasing funding for agri-processing units. Furthermore, states were urged to ensure mobile veterinary units are available in every district.
Emphasizing financial inclusion, the Finance Minister stated that every eligible person in the Northeast should be covered under the Pradhan Mantri Jan Dhan Yojana (PMJDY). She also directed the DFS to coordinate with the Ministry of DoNER and the North Eastern Council (NEC) to explore credit options for One District One Product (ODOP) vendors.
Finally, Sitharaman advised RRBs to develop suitable MSME products that align with local activities and to expand banking touchpoints in underserved areas, particularly in Nagaland and Arunachal Pradesh.
The post RRBs Must Focus on Agriculture Credit to Boost Northeast Economy: FM Sitharaman appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates.
