The Finance Minister of India, Nirmala Sitharaman, emphasized the critical role of regional rural bank officials in fulfilling the vision of a developed India during a review meeting held in Udaipur on Thursday. She urged these officials to strengthen their local connections to effectively implement government schemes and benefit the general public.
Instructions from the Finance Minister
Chairing the meeting for the regional rural banks (RRBs) of the Western and Central regions, Sitharaman highlighted the urgency of expanding banking outreach. She stated that RRB officials need to enhance their local collaboration to contribute meaningfully to the mission of a developed India.
Strategies for Banks to Follow
In her address, Sitharaman called on all bank officials to work in coordination to ensure the successful delivery of government programs aimed at improving the lives of the populace. The review meeting saw participation from chairpersons of regional rural banks in the Western-Central region along with CEOs of their associated banks.
Tackling Challenges Faced by Banks
The meeting also focused on developing effective strategies to address the challenges currently faced by banks. An assessment of the previous financial year’s annual operational plan along with the progress made was also conducted. Key officials present included M. Nagaraju, Secretary of the Financial Services Department, Additional Secretary M.P. Tangirala, and Executive Director of the Reserve Bank of India (RBI), Jayant Kumar Das.
Capitalizing on RBI’s Relaxations
Earlier this week, the Finance Minister held a performance review meeting with the heads of public sector banks (PSBs), urging them to work on improving deposit growth. Over the past few months, the surge in loans has lagged behind deposit growth by 3-4%, creating an imbalance in asset liability for banks. Sitharaman noted that the RBI has granted banks the freedom to adjust interest rates, encouraging them to utilize this flexibility to make deposits more attractive.
Conclusion
The proactive measures proposed by Finance Minister Nirmala Sitharaman aim to integrate better banking practices with government initiatives, fostering economic growth and ensuring that the vision of a developed India is within reach. By strengthening local ties and effectively utilizing RBI’s guidelines, banks can contribute significantly to the socio-economic fabric of the nation.
