ITANAGAR, Sep 30: Union Finance Minister Nirmala Sitharaman on Monday directed the Regional Rural Banks (RRBs) of the Northeast to increase their share in ground-level agriculture credit disbursement with a special focus on horticulture and allied agriculture activities such as piggery, poultry, dairy and fisheries, officials said.
Chairing a review meeting of the RRBs in the northeastern states at the civil secretariat here, Sitharaman urged the banks to put greater thrust on the identification of the right beneficiaries while sanctioning loans under various central schemes, they said.
She asked the NABARD to promote Farmer Producer Organisations (FPOs) in the region.
Stating that the Krishi Udan Scheme of the Centre provides access to the national market for perishable horticulture and floriculture produce, she directed all stakeholders to take necessary steps to realise the potential of allied agriculture activities in the region.
Sitharaman also directed for organising special state-level bankers’ committees (SLBCs) meetings involving RRBs to explore the possibility of tapping the potential of horticulture, floriculture, sericulture and animal husbandry to resolve the issue of availability of land records for extending agri credit and for increasing credit for agri-processing units.
States were urged to ensure the provision of mobile veterinary units in each district.
The FM acknowledged the demonstrable improvement in the financial performance and technology upgradation of the RRBs.
“Consolidated CRAR of 15 per cent in FY’24 is at healthy levels,” she said, noting that while there were losses of Rs 11 crore in FY’23, a net profit of Rs 205 crore was recorded in FY’24.
Gross Non-Performing Assets (GNPA) have also improved from 15.6 per cent in FY’22 to 7.3 per cent in FY’24, she noted.
RRBs with necessary support from sponsor banks and NABARD were directed to open new branches in non-covered districts, especially in Nagaland and Arunachal Pradesh.
The sponsor bank was directed to handhold Nagaland Rural Bank to resolve the net worth issue for launching internet banking services.
Sitharaman lauded the significant role played by RRBs in financial inclusion in the region and urged them to continue their efforts towards saturation of financial inclusion schemes such as Jan Dhan Yojana, Jeevan Jyoti Bima Yojana, Suraksha Bima Yojana and Atal Pension Yojana (APY), by achieving targets.
She said the banking correspondents in Tripura were doing appreciable work.
“All RRBs must devise suitable MSME products aligning with MSME activities and leverage their personal and local connect to increase penetration,” Sitharaman said, urging states to open unity malls that would promote local products.
The minister also directed the Department of Financial Services to hold a meeting with the Ministry of Development of North Eastern Region and the North Eastern Council to explore the possibilities for extending credit for the One District One Product scheme and opening of unity malls.
The meeting also focused on business performance, upgrading digital technology services, and fostering business growth in allied agriculture and MSME clusters, officials said.
Among those present in the meeting were chairpersons of RRBs and sponsor banks, representatives of RBI, NABARD and SIDBI, and senior officers of all the northeastern states. (PTI)
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