Finance Minister Chairs Review Meeting of Regional Rural Banks in Northern Region
Focusing on Digital Transformation and Financial Inclusion
New Delhi, August 30, 2023 – In a significant step towards strengthening the rural banking sector and enhancing financial inclusion, Union Finance Minister Smt. Nirmala Sitharaman chaired a crucial review meeting of Regional Rural Banks (RRBs) in the Northern Region today. The meeting, held in New Delhi, brought together key stakeholders to discuss critical aspects of rural banking and digital transformation.
Empowering RRBs through Digital Capability Upgrade
During the review meeting, Finance Minister Smt. Sitharaman placed a strong emphasis on the digital capability upgradation of RRBs. She outlined a clear directive to the Managing Director & CEO of Punjab National Bank (PNB), instructing them to ensure that all RRBs affiliated with PNB acquire digital onboarding capability by November 1, 2023. This move aims to streamline and modernize the onboarding process, making it more accessible and efficient for customers.
Streamlining Pradhan Mantri Jan Dhan Yojana (PMJDY) Accounts
Recognizing the importance of efficient financial services for rural communities, Finance Minister Smt. Sitharaman urged RRBs to undertake the removal of duplicate Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts. This streamlining effort will not only reduce redundancy but also enhance the effectiveness of government financial inclusion initiatives. Additionally, she highlighted the need to facilitate storage facilities for apple growers, particularly in Jammu & Kashmir and Himachal Pradesh, to support their livelihoods.
Enhancing Rural Banking Network
Finance Minister Smt. Sitharaman stressed the importance of mapping RRBs with Micro, Small, and Medium Enterprises (MSME) clusters. This strategic alignment will foster economic growth in rural areas and empower local businesses. Furthermore, she called for a greater thrust on expanding the network of rural branches in cluster areas identified by the Ministry of Micro, Small and Medium Enterprises. This move aims to bridge the gap between rural and urban banking services.
Accelerating Financial Inclusion
The Finance Minister emphasized the need to accelerate penetration under the Pradhan Mantri Mudra Yojana (PMMY) and financial inclusion initiatives. She highlighted the importance of creating a timebound roadmap to ensure the completion of designated activities within specified deadlines.
Collaborative Efforts for Rural Prosperity
The meeting was attended by various dignitaries, including the Secretary of the Department of Financial Services (DFS), Additional Secretary, other senior DFS officials, representatives of the Reserve Bank of India (RBI), respective State Governments, the National Bank for Agriculture and Rural Development (NABARD), sponsor Banks, and RRBs.
The discussions held during this review meeting underscore the government’s commitment to empowering rural communities through enhanced financial services, digital transformation, and targeted initiatives for inclusive growth.
For the latest updates on these developments and the progress of RRBs in the Northern Region, stay tuned to our official channels and visit the Department of Financial Services website.
