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Finance Minister Nirmal Sitharaman on Friday said regional rural banks (RRBs) in South India performed better than the national average in certain parameters.
The CD ratio, gross NPAs, and provision coverage ratio (PCR) of RRBs of the Southern region were better than the national average. However, RRBs have to improve the current and aavings account (CASA) ratio, she said while chairing a review meeting with Chairpersons and senior officials of Regional Rural Banks RRBs from the Southern Region, in Chennai.
The meeting was also attended by the Secretary, Department of Financial Services, and senior RBI officials Reserve Bank of India, with representation by the Finance/Special Secretaries/senior officers of the Finance Department of Tamil Nadu, Andhra Pradesh, Telangana, Kerala, Puducherry, and Karnataka, according to a statement.
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The meeting was also attended by Managing Directors and CEOs of the State Bank of India, Indian Bank, Union Bank of India, Canara Bank, Indian Overseas Bank and Nabard.
Sitharaman urged the RRBs to continue their focus on the flagship schemes of the Central Government such as PMJJBY, PMSBY, PM SVANidhi, Atal Pension Yojana, PM Jan Dhan Yojana, PM Mudra Yojana, KCC, and KCC Animal Husbandry & Fisheries and aim for their saturation.
Tech adoption
She asserted that better adoption of technology, loan management system, and core banking systems should be done in a time-bound manner in the RRBs of the Southern region. “RRBs should focus on increasing digitally active customers in line with the government’s effort to move towards greater digitalisation,” she added.
He also urged the sponsor banks to map RRBs with MSME clusters and improve their presence in those clusters, while devising innovative products for the MSME to serve them in a better way.
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She also urged RRBs in the southern region to work closely with the RBI and State Authorities concerned to improve their physical presence across the state.
She also highlighted leveraging Account Aggregator Framework, especially for lending to the allied agricultural sector like fisheries and animal husbandry, besides granting loans to street vendors under PM SVANidhi.
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