Government directs regional rural banks to achieve viability plan targets within a year

New Delhi, May 12,2023:  The government on Friday urged regional rural banks (RRBs) to redouble their efforts for achieving the targets fixed in the viability plans within the next one year itself.

This direction was given to them during a review meeting held in Pune by banking secretary Vivek Joshi.

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

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

The need for technology upgradation of RRBs, strategies for non performing assets (NPAs) 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.

Joshi emphasised that sponsor banks, in partnership with NABARD, need to proactively handhold their respective RRBs for facilitating technology adoption so as to enable them to serve their customers more efficiently.

Joshi chaired the meeting as part of a symposium on ‘Strengthening financial sustainability and operational viability of RRBs’, which was held in Pune during May 11-12.