Union Finance and Corporate Affairs Minister Nirmala Sitharaman convened a review meeting on Friday to assess the performance of Regional Rural Banks (RRBs) from the Eastern Belt. The meeting aimed to strengthen the role of RRBs in promoting rural development and was attended by Bihar Deputy Chief Minister Samrat Chaudhary, Department of Financial Services (DFS) Secretary M. Nagaraju, RRB Chairmen, and senior DFS officials.
The Ministry of Finance announced the meeting on social media platform X, stating, “Union Minister for Finance and Corporate Affairs @nsitharaman chairs the review meeting of the Regional Rural Banks #RRBs of the Eastern Belt, in Patna, today. Also in attendance are @samrat4bjp, Deputy Chief Minister of Bihar; M. Nagaraju, Secretary @DFS_India, along with Chairmen of RRBs and senior officials of @DFS_India.”
This review is part of a broader series of nationwide meetings conducted by the Finance Minister to enhance the operational effectiveness of RRBs. Earlier this month, on November 9, Sitharaman reviewed the operations of 10 RRBs from the Southern Region in Bengaluru, where she outlined strategies to optimize their contributions to rural economic growth.
Sitharaman emphasized the critical role of RRBs in fostering financial inclusion in rural area
During the meeting, Sitharaman emphasized the critical role of RRBs in fostering financial inclusion in rural areas. She highlighted the significance of targeted lending under various government schemes, including PM Vishwakarma and PM Surya Ghar Muft Bijli Yojana, and called for an increased focus on agricultural credit.
The Finance Minister urged RRBs to improve their technological infrastructure to facilitate seamless digital banking services, particularly in areas with connectivity challenges. She also stressed the need for RRBs to develop financial products tailored to the needs of MSME clusters in sectors such as textiles, handicrafts, jute, food processing, and dairy farming. These initiatives are expected to enhance the credit portfolios of rural banks while supporting small and micro enterprises.
Additionally, the meeting highlighted the importance of sponsor banks in assisting RRBs by adopting best practices, providing technical support, and ensuring resource availability. Sitharaman commended the progress made by RRBs in financial performance and technological advancements since regular reviews began in 2022. She urged banks to maintain asset quality, enhance governance, and explore innovative models such as co-lending and risk-sharing in collaboration with SIDBI.
