Regional rural banks news: Finance Minister Nirmala Sitharaman expressed concern over the slow progress in computerization of regional rural banks and asked to speed it up to provide better financial services in villages and towns.
FM Nirmala Sitharaman: Many campaigns and facilities are being provided by the government and the Reserve Bank to improve the banking system across the country. Now a lot of concern is being expressed by the Finance Minister regarding banks. Finance Minister Nirmala Sitharaman expressed concern over the slow progress in computerization of regional rural banks and asked to speed it up to provide better financial services in villages and towns.
Government has introduced Kisan Portal
After presenting the Farmer Loan Portal and Weather Information Network Data System (WINDS) manual, Sitharaman said that a lot of work remains to be done for the digitalization of regional rural banks and cooperative banks.
Co-operative banks are generally not prosperous
He said that co-operative banks are not equally prosperous and their financial health varies. Work to increase capacity in this sector is being done under the Ministry of Cooperation headed by Home Minister Amit Shah.
Cooperative banks will be digitized rapidly
The Finance Minister said that digitization of cooperative banks will happen at the required pace. However, he said that I am more concerned about RRBs, their digitization and computerization. So, if they do not have this, the extension of phone banking facility…or internet banking facility…will not work.
Finance Minister gave this information
The Finance Minister said that a lot of work is still pending and the Department of Financial Services is making them aware about computerization at a fast pace. He said that the villages kept the economy afloat during the Covid-19 pandemic and the lockdown imposed to prevent it, in view of this the government is giving a lot of importance to farmers and the agriculture sector.
Agriculture Minister said that farmers’ income has increased
On this occasion, Agriculture Minister Narendra Singh Tomar said that the income of farmers has increased due to various measures of the government. He said the budget allocation for the ministry has increased manifold since 2013-14 as the Prime Minister Narendra Modi-led government gives great importance to this sector.
Agriculture Minister spoke about loans
Regarding short-term crop loans, Tomar said that there is no shortage of funds for the sector. The agricultural credit target in the current financial year has been pegged at Rs 20 lakh crore with emphasis on animal husbandry, dairy and fisheries. Generally nine percent interest is charged on agricultural loans. However, the government is providing interest subvention to provide short-term crop loans at affordable rates and help boost agricultural production.
Will get loan of Rs 3 lakh
To ensure short-term agricultural loans up to Rs 3 lakh to farmers at an effective rate of seven per cent per annum, the government is giving two per cent interest subsidy.
Finance Minister spoke about KCC
Regarding Kisan Credit Card (KCC), Sitharaman said that banks should provide all the necessary data by December 31, 2023 for the ‘Kisan Loan Portal’ to help farmers get subsidized loans under the KCC scheme. He also asked Financial Services Department Secretary Vivek Joshi to ensure that banks provide all the data within the stipulated time.
This campaign will start from October 1
The Finance Minister announced the launch of KCC campaign to take Kisan Credit Card Scheme to every household. This campaign will be launched on October 1, 2023.
