Nirmala Sitharaman : On Monday, Nirmala Sitharaman, the Union Finance Minister, presided over a conference in Itanagar, Arunachal Pradesh, to examine the performance of the North East Region’s seven Regional Rural Banks, which serve the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
During the review conference, the Union Finance Minister was informed of the Northeast RRBs’ improved financial performance and technological advancements since the regular review began in 2022, according to a statement from the minister’s office.
Given the vital function that RRBs play in helping rural economies thrive, the Union Finance Minister asked RRBs to expand loan disbursement under several Government of India flagship programs such as PM MUDRA and PM Vishwakarma.
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Nirmala Sitharaman stated
The Minister also stated that the emphasis should be on loans for agriculture, horticulture, and linked businesses such as piggery, goatery, sericulture, or and fishing.
She also urged NABARD to establish Farmer Producer Organizations ( FPO in the north.
The Union Finance Minister also urged interested parties to convene special State Level Bankers’ groups (SLBCs) conferences involving RRBs to investigate the possibility of tapping the possible benefits of horticulture, floriculture, sericulture, and animal husbandry in the northern Eastern states; fix the issue regarding record availability for extending Agri credit; and increase financing for agri-processing units of measurement.
States were requested to provide mobile veterinarian units in each area. During the meeting, she also stated that every eligible citizen in the area of the North East should be covered by the Pradhan Mantri Jan Dhan Yojana.
The Finance Minister of the Union further suggested that all RRBs develop acceptable MSME products that are aligned with MSME activities and use their personal and local relationships to improve penetration.
Officials advised the Minister about advancements in economic performance and technologies since regular assessments began in 2022. The RRBs have a combined capital-to-risk (weighted) asset ratio of 15% in the fiscal year ending March 2024. Revenue also improved from a net loss of Rs 11 crore in fiscal 2022-23 to a net profit of Rs 205 crore in fiscal 2024, with gross nonperformance liabilities (GNPA) reducing from 15.6% in fiscal 2022 to 7.3% in the previous fiscal year.
Nirmala Sitharaman asked RRBs
Sitharaman requested that the regulatory bodies “promote credit issuance under different Ministry of India biggest initiatives such as PM MUDRA and PM Vishwakarma.” She also ordered NABARD “to promote farmer-producer associations in the northeastern region” and state-level financiers’ conventions to investigate potential in horticulture, floriculture, sericulture, and animal husbandry.
The Minister also requested that RRBs, in partnership with sponsor banks and Nabard, build new financial connections in areas where banking is scarce, particularly Nagaland and Arunachal Pradesh. She emphasized that “every qualified individual in the northeastern East region should get covered under Pradhan Mantri Jan Dhan Yojana.”
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