In a significant review meeting held in Itanagar, Arunachal Pradesh, Union Finance Minister Nirmala Sitharaman evaluated the performance of seven Regional Rural Banks (RRBs) in the North East. Her focus centered on enhancing credit disbursement under various government schemes, particularly in agriculture and allied activities. This initiative is crucial for promoting the financial inclusion of eligible individuals in the region under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
Review Meeting Highlights
During the meeting, Sitharaman highlighted the importance of RRBs in bolstering the rural economy. She commended the banks for their improved financial performance and technology upgrades since the regular reviews began in 2022. The Minister urged the RRBs, with support from their sponsor banks, to escalate credit disbursement under flagship government schemes such as PM MUDRA and PM Vishwakarma.
Emphasizing the potential of the North Eastern region, Sitharaman directed the banks to increase credit for agricultural sectors, including horticulture, piggery, goatery, sericulture, and fisheries. She also stressed the need for the National Bank for Agriculture and Rural Development (NABARD) to promote Farmer Producer Organizations (FPOs) in the North East, facilitating better financial opportunities for farmers.
Strategic Initiatives and Recommendations
To enhance credit flow, Sitharaman recommended that stakeholders conduct special State Level Bankers’ Committees (SLBCs) meetings involving RRBs. These meetings should aim to tap into the horticulture, floriculture, sericulture, and animal husbandry potential in the North Eastern states. Additionally, the Minister pointed out the need to resolve issues related to land record availability for extending agricultural credit, thereby increasing support for agri-processing units.
The Union Finance Minister also called for the establishment of mobile veterinary units in each district, ensuring that farmers have access to necessary services. She reiterated that every eligible person in the North East should be covered under the PMJDY, promoting financial inclusivity in the region.
Focus on MSME Development
Sitharaman encouraged all RRBs to develop suitable products tailored for Micro, Small, and Medium Enterprises (MSMEs). By leveraging personal and local connections, RRBs can significantly enhance their reach and impact within the community, facilitating greater penetration of financial services among small businesses.
Results
Nirmala Sitharaman, the Union Finance Minister, conducted an assessment that shows a proactive approach to improving RRB performance in the Northeast. With an emphasis on MSME development, financial inclusion, and agriculture, these programs seek to strengthen the rural economy in the area. The government’s willingness to assist the growth and development of the North Eastern states is demonstrated by its commitment to expanding credit distribution under various schemes.
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