FM Nirmala Sitharaman Exhorts Rural Banks To Map & Provide Financial Services Around MSME Clusters

New Delhi, Sept 1 (KNN) Union Finance Minister Nirmala Sitharaman has asked banks to map regional rural banks (RRBs) with MSME clusters, reported FE. 

Chairing a review meeting of RRBs of Northern Region in New Delhi, she asked banks to put greater thrust on increasing the network of rural branches in cluster areas identified by the MSME Ministry. 

RRBs are scheduled commercial banks operating at regional levels in the country to enable banking and credit services for agriculture and other rural sectors. 

However, they may have a network for urban operations also. The nationalised banks are sponsor banks of RRBs to aid and assist them.

The finance minister also emphasised increasing penetration under Pradhan Mantri Mudra Yojana (PMMY) and financial inclusion and stated that a roadmap has to be prepared for completing the designated activities in a timebound manner, said a statement by the finance ministry. 

Launched in 2015, the Mudra scheme refinances last-mile financiers who provide credit to micro and small enterprises in manufacturing, trading and services activities as well as agri-allied activities. 

The scheme enables credit at three different growth stages — Shishu, Kishor, and Tarun with financial limits up to Rs 50,000; Rs 50,00 to Rs 5 lakh; and Rs 5 lakh to Rs 10 lakh respectively.  (KNN Bureau)