Government directs regional rural banks to achieve viability plan targets within a year

Govt emphasized that sponsor banks, in partnership with NABARD, need to proactively handhold their respective RRBs for facilitating technology adoption

PGurus Newsdesk

May 13, 2023

Govt emphasized that sponsor banks, in partnership with NABARD, need to proactively handhold their respective RRBs for facilitating technology adoption

Dr Vivek Joshi, Secretary, DFS, chairs review meeting of financial performance of RRBs

The government on Friday urged regional rural banks (RRBs) to redouble their efforts to achieve the targets fixed in the viability plans within the next year.

This direction was given to them during a review meeting held in Pune by banking secretary Dr. Vivek Joshi. During the meeting, the progress made by RRBs on various parameters fixed in their respective viability plans was reviewed.

It was noted during the meeting that there has been substantial improvement in the financial performance of RRBs in 2022-23 as compared to 2021-22.

The need for technology upgradation of RRBs, strategies for non-performing assets (NPAs) reduction, IT initiatives, improving financial inclusion, enhancing credit delivery to rural areas, and support being given by sponsor banks to the RRBs were other issues that were discussed in the meeting.

Joshi emphasized that sponsor banks, in partnership with NABARD, need to proactively handhold their respective RRBs for facilitating technology adoption so as to enable them to serve their customers more efficiently.

Joshi chaired the meeting as part of a symposium on ‘Strengthening financial sustainability and operational viability of RRBs’, which was held in Pune during May 11-12.

[With Inputs from IANS]

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