FM Sitharaman to meet heads of banks; to review performance, governance reforms in RRBs 

Currently, the Centre holds 50 per cent in RRBs, while 35 per cent and 15 per cent are with the concerned sponsor banks and state governments.

Published: 07th July 2022 01:12 PM  |   Last Updated: 07th July 2022 01:12 PM   |  A+A-

Finance Minister Nirmala Sitharaman (Photo | EPS)

Finance Minister Nirmala Sitharaman (Photo | EPS)

By PTI

NEW DELHI: Finance Minister Nirmala Sitharaman is going to hold a review meeting with the heads of public sector lenders later on Thursday to discuss various issues and to review the progress of various government schemes related to agriculture and allied sectors.

According to sources, the meeting is expected to review governance reforms in Regional Rural Banks (RRBs).

RRBs, which play an important role in agriculture credit, is sponsored by Public Sector Banks (PSBs).

Currently, the Centre holds 50 per cent in RRBs, while 35 per cent and 15 per cent are with the concerned sponsor banks and state governments, respectively.

Of the 43 RRBs, about one-third RRBs, especially from north-eastern and eastern regions, are in losses and they need funds to meet regulatory capital requirements of 9 per cent, sources said.

These banks were formed under the RRB Act, 1976 with an objective to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas.

The Act was amended in 2015, whereby such banks were permitted to raise capital from sources other than the Centre, states and sponsor banks.

Currently, the Centre holds 50 per cent in RRBs, while 35 per cent and 15 per cent are with the concerned sponsor banks and state governments, respectively.

Last month, the Finance Ministry had a full-day meeting with CEOs of public sector banks.

Bankers were urged to sanction loans for productive sectors to accelerate the revival of the economy facing headwinds including from the Russia-Ukraine war.

Banks were also asked to expedite non-performing assets (NPAs) resolution and focus on recovery of bad loans. The meeting on June 20 also took stock of credit growth, asset quality, and business growth plans of banks.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp