Finance Minister Urges Regional Rural Banks To Enhance MSME Support And Digital Services

New Delhi, Aug 20 (KNN) In a review meeting on Monday, Finance Minister Nirmala Sitharaman called on Regional Rural Banks (RRBs) to develop tailored financial products for MSME clusters, aiming to increase banking penetration in rural areas.

The minister emphasised the need for active outreach by RRB branches located in MSME hubs to extend credit to small and micro enterprises in sectors such as textile, furniture, leather, and food processing.

Sitharaman stressed the importance of maintaining asset quality, expanding digital services, and ensuring robust corporate governance.

She urged RRBs to update their technology infrastructure, highlighting the potential of digital banking services, particularly in regions with challenging physical connectivity.

The minister also emphasised the role of sponsor banks in providing technical assistance and resources to RRBs.

She called for greater precision in identifying beneficiaries for various government schemes, including PM Vishwakarma and PM Surya Ghar Muft Bijli Yojana, and directed RRBs to increase their share in ground-level agriculture credit disbursement.

The meeting revealed significant improvements in RRBs' financial performance, with a record consolidated net profit of Rs 7,571 crore in 2023-24 and the lowest gross non-performing assets ratio in a decade at 6.1 per cent.

(KNN Bureau)