The Finance Ministry on Friday asked Sponsor banks along with NABARD to proactively handhold their respective Regional Rural Banks (RRBs) for facilitating technology adoption so as to enable them to serve their customers more efficiently.

Chairing a symposium on Strengthening financial sustainability and operational viability of RRBs at Pune, Vivek Joshi, Secretary, Department of Financial Services (DFS) also urged RRBs to redouble their efforts for achieving the targets fixed in the viability plans within the next one year itself. 

Also present were Additional Secretary DFS, Chairman NABARD, CGM RBI, MD/EDs of Sponsor Banks and Chairpersons of RRBs to review the performance of RRBs.

Reviewing parameters

During the meeting, the progress made by RRBs on various parameters fixed in their respective viability plans were reviewed. 

It was noted that there has been substantial improvement in the financial performance of RRBs in 2022-23 as compared with 2021-22. 

The need for technology upgradation of RRBs, strategies for NPA reduction, IT initiatives, improving financial inclusion, enhancing credit delivery to rural areas and support being given by sponsor banks to the RRBs were other issues that were discussed in the meeting.