Banking: Union Finance Minister Nirmala Sitharaman said that RRBs should adopt technology, debt management and core banking system features in a time bound manner. Sitharaman said that regional rural banks also need to take steps towards digitization.
Nirmala Sitharaman Update: Union Finance Minister Nirmala Sitharaman asked regional rural banks to focus on increasing digitally active customers in line with the Centre’s effort to digitize the economy. Sitharaman was in Chennai to review the financial performance of Regional Rural Banks (RRBs) in the southern region. During the meeting, Financial Services Secretary Vivek Joshi gave complete information about the financial health of regional rural banks.
Asked to pay attention to the plans
Presiding over the meeting, the Finance Minister called upon the RRBs to focus on the flagship schemes of the Central Government like Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, PM Swanidhi, Atal Pension Yojana, PM Jan Dhan Yojana, PM Mudra Yojana, Kisan Credit Card (KCC). asked to give Sitharaman said that the loan-deposit ratio and provisioning ratio in lieu of bad loans of RRBs in the southern region is better than the national average. He asked Regional Rural Banks and sponsor banks to improve the Current and Savings Account (CASA) ratio.
Towards Digitization
He also said that RRBs should adopt technology, debt management and core banking system features in a time bound manner. Sitharaman said, “Regional rural banks also need to take steps towards digitization. They should focus on digitally active customers in line with the Centre’s digitization effort.
Urges to work together
He urged the RRBs of the region to work together with the Reserve Bank of India and the concerned state authorities to improve their presence across the state. The meeting was attended by Tamil Nadu Finance Secretary T Udayachandran, secretaries and senior officials of the finance ministries of Andhra Pradesh, Telangana, Kerala, Puducherry and Karnataka. Managing Directors and CEOs of State Bank of India, Indian Bank, Union Bank of India, Canara Bank, Indian Overseas Bank and NABARD also participated in the discussion.
Review of functioning
At present, the Center has 50 percent stake in Regional Rural Banks while the concerned sponsor bank has 35 percent and the state government has 15 percent stake. It is noteworthy that Sitharaman had reviewed the functioning of the rural development banks of the northern region last month. This was the second review meeting. (input language)
