Finance Minister Nirmala Sitharaman on Thursday (July 8, 2022) asked public sector banks to continue to give smooth loans to Kisan Credit Card (KCC) holders to boost rural income. During a half-day long meeting with the CEOs of state-run banks, the Finance Minister also directed to improve the technology used in Regional Rural Banks (RRBs).
After the meeting, Fisheries, Animal Husbandry and Dairying Minister Purushottam Rupala said that the Finance Minister reviewed the Kisan Credit Card (KCC) scheme and discussed how institutional credit can be made available to farmers. Rupala further said that the meeting was chaired by the Finance Minister and the issue of Kisan Credit Card to all the people engaged in fisheries and dairy sector was discussed.
Regional banks will be modernized: Minister of State for Finance Bhagwat K Karad said, “It was decided on the regional rural banks that the sponsor bank will have to help them in digitization and technological improvement.” Let us tell you, RRBs, which play an important role in giving loans to farmers. They are sponsored by public sector banks. At present, the Center holds 50 per cent stake in RRBs while 35 per cent and 15 per cent are held by the respective sponsor banks and state governments, respectively.
News agency PTI quoted sources as saying that out of 43 RRBs, nearly a third (especially from the north-eastern and eastern regions) are being operated at a loss and 9 per cent of this has to be funded to meet the RBI’s guidelines. is required.
These banks were formed under the RRB Act, 1976 with the objective of providing credit and other facilities to small farmers, agricultural laborers and artisans in rural areas. The Act was amended in 2015 to allow RRBs to raise capital from sources other than the Centre, states and sponsor banks.
Earlier last month, the Finance Ministry held a meeting with the CEOs of public sector banks. Bankers were asked to sanction more loans to productive sectors to accelerate the revival of an economy facing adversity, including the Russo-Ukraine war.