On Saturday, Finance Minister Nirmala Sitharaman urged Regional Rural Banks (RRBs) to ramp up credit disbursement for Micro, Small, and Medium Enterprises (MSMEs) under government schemes such as MUDRA and PM Vishwakarma, emphasizing the need for active support from sponsor banks.
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Focus on Agriculture and Allied Sectors
In a review meeting with 10 RRBs from the southern region, the Finance Minister directed these banks to increase their contributions to ground-level agriculture credit, especially in allied areas like dairy, animal husbandry, and fisheries, to fully harness the potential of agriculture-related activities in the region.
Specifically, RRBs and their sponsor banks were asked to collaborate with state government departments to enhance credit support for the fisheries sector in Kerala and the dairy sector in Telangana.
Emphasis on Financial Inclusion and MSME Growth
Union Minister of State for Finance, Pankaj Chaudhary, encouraged banks to prioritize financial inclusion targets. The meeting covered key areas such as business performance, digital technology upgrades, and business growth in agriculture and MSMEs.
Finance Minister Sitharaman commended RRBs for their progress in financial performance and technology upgrades since the initiation of regular reviews in 2022. The importance of increasing Current Account Savings Account (CASA) deposits was highlighted, with a focus on RRBs in the southern region to boost sustainable credit growth.
Advancing Financial Inclusion Schemes
RRBs were recognized for their role in promoting financial inclusion across the southern region. The Finance Minister urged them to meet targets under schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).
Strengthening MSME Credit and Digital Innovations
The Finance Minister emphasized the need to bolster credit for MSMEs and enhance digital onboarding processes for customers. The Small Industries Development Bank of India (SIDBI) and RRBs were instructed to explore digital collaborations, including co-lending, risk-sharing models, and refinance options for MSME portfolios.
RRBs were also directed to create tailored credit strategies for MSMEs that align with regional industry clusters, along with hosting outreach programs to raise awareness about the available schemes.
