FM to soon review performance of RRBs

New Delhi Finance minister Nirmala Sitharaman is likely to meet heads of Regional Rural Banks (RRBs) and review their performance soon, sources said.

RRBs play an important role in financial inclusion and serving the credit needs of rural economy. According to sources, the finance minister would review the progress with regard to issuance of Kisan Credit Card (KCC) to farm and allied sector by RRBs. With an aim to provide the benefits of KCC loans to maximum number of farmers, a special KCC saturation drive was launched under Atma Nirbhar Bharat Abhiyan to cover 2.5 crore farmers under KCC with a credit boost of Rs 2 lakh crore.

She is also expected to review capital position of some of the weak RRBs, sources added. The need for technology upgradation of RRBs, strategies for NPA reduction, IT initiatives, improving financial inclusion, enhancing credit delivery to rural areas and support being given by sponsor banks to the RRBs are other issues that may be discussed in the meeting, it added. These banks were formed under the RRB Act, 1976 with an objective to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas. Currently, the Centre holds 50 per cent stake in RRBs, while 35 per cent and 15 per cent are with the concerned sponsor banks and state governments, respectively. Earlier during the day, Sitharaman had a meeting with CEOs of public sector banks. She reviewed financial performance and also took stock of the progress made by banks in achieving targets set for various government schemes, including PM Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi), Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), Atal Pension Yojana and emergency credit line guarantee scheme (ECLGS) to help businesses affected by Covid-19.