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'RRBs Must Increase Share in Ground Level Agriculture Credit Disbursement' FM in Eastern Region Review Meeting
Union Finance Minister Nirmala Sitharaman has urged Regional Rural Banks (RRBs) to focus on technological advancements to enhance their efficiency.

Author: Kanal English Desk
Published: December 2, 2024
Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired a meeting to review the performance of eight Regional Rural Banks (RRBs) of the Eastern Region covering the four states of Bihar, Jharkhand, Odisha and West Bengal in Patna. The review meeting was held in Patna, Bihar, on November 29.
During the meeting, the Finance Minister issued several directives to the Regional Rural Banks (RRBs). She emphasized the importance of leveraging technological advancements to improve their operational efficiency.
Attendees of the Meeting
Shri Samrat Choudhary, Deputy Chief Minister of Bihar; Shri M. Nagaraju, Secretary, Department of Financial Services (DFS), ED, RBI; Chairpersons of RRBs and sponsor banks were also present during the meeting. Additional Secretary, DFS, representatives of NABARD and SIDBI and senior officers of participating states also attended the meeting.
Call to Intensify the Focus
The RRB review meeting 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 – 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.
Smt. 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. Union Finance Minister directed Uttar Bihar Gramin Bank to increase credit flow to fisheries and foxnut (makhana) to realise the full potential of these activities in the region.
Union Finance Minister stressed on the potential of One District One Product (ODOP) programme to increase self-employment in the region. She urged state government to extend support to banks for increasing credit flow to women SHGs and to join hands with NABARD and SIDBI to evolve them into enterprises. Financial Institutions were further directed to provide support for training and marketing linkages.
Need of More Digitalisation
Ms. Sitharaman underlined importance of providing digital services of Internet Banking, Mobile Banking and UPI to customers of RRBs and directed these RRBs to complete onboarding of these services on priority by end of December 2024. She further urged RRBs to promote these services amongst their customers to increase their usage with help of respective sponsor banks.
Positive Financial Parameters
She also noted improvement in financial parameters of these RRBs. Consolidated CRAR has improved from 7.8% in FY 2022 to 9.4% in FY 2024 and Gross Non-Performing Assets (GNPA) have improved from 25% in FY 2022 to 15% in FY 2024. RRBs in Eastern Region have posted consolidated profit of Rs 625 crore during FY 2024 against net loss of Rs. 690 crore in FY 2023.
Role of Sponsor Banks
The Union Finance Minister also highlighted that sponsor banks and RRBs must recognise the challenges that lie ahead. Maintaining asset quality, expanding digital services, and ensuring robust corporate governance are the areas that require continued focus.