FinMin asks Sponsor Banks to handhold RRBs for technology adoption

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the Ministry of Finance On Friday asked sponsoring banks along with nappard To proactively introduce its own Regional Rural Banks (RRBs) to facilitate the adoption of technology to enable them to serve their clients more efficiently.

Chaired a seminar on Promote the financial sustainability and operational viability of Radio Regulations devices In Pune, Vivek Joshi, Secretary, Department of Financial Services (DFS) also urged RRBs to redouble their efforts to achieve the targets set in the feasibility plans within the next year itself.

Also present were the DFS Additional Secretary, the President of NABARD, the CGM RBI, the MD/EDs of the sponsoring banks and the heads of the RRBs to review the performance of the RRBs.

Parameters review

During the meeting, the progress made by the Radio Regulations Bodies on the various criteria defined in their respective feasibility plans was reviewed.

It was noted that there was a significant improvement in the financial performance of the RR banks in 2022-2023 compared to 2021-2022.

Other issues discussed at the meeting included the need to upgrade technology in RRBs, strategies to reduce NPA, information technology initiatives, improving financial inclusion, strengthening the provision of credit to rural areas, and support provided by sponsoring banks to RRBs.