RRBs need to focus on digitally active customers to promote greater digitalisation of economy: FM Nirmala Sitharaman

economictimes.indiatimes.com:

Sitharaman on Friday exhorted Regional Rural Banks (RRBs) to focus on increasing digitally active customers to supplement the government's effort for greater digitalisation of the economy. Sitharaman was here to review the financial performance of RRBs in the southern region. During the meeting, Financial Services Secretary Vivek Joshi gave a presentation on various financial metrics of the RRBs.

While chairing the review meeting, the finance minister asked RRBs to continue their focus on the flagship schemes of the central government like Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, PM SVANidhi, Atal Pension Yojana, PM Jan Dhan Yojana, PM Mudra Yojana, Kisan Credit Cards (KCC), KCC Animal Husbandry & Fisheries, etc. and aim for their saturation. While highlighting that the credit-deposit ratio, gross NPAs and provision coverage ratio (PCR) of Regional Rural Banks of the Southern region were better than the national average, she asked the RRBs and Sponsor Banks to improve the current and savings account (CASA) ratio.

She stressed that better adoption of technology, loan management system and the core banking system should be done in a time-bound manner in the RRBs of the Southern region. «RRBs should focus on increasing digitally active customers in line with the government's effort to move towards greater digitalisation,» she said. The minister also said that Sponsor Banks should map RRBs with MSME clusters and improve their presence in these clusters while devising innovative products for the MSMEs to serve them in a better way.