Union Finance Minister Smt. Nirmala Sitharaman chairs meeting with heads of Public Sector Banks and Regional Rural Banks (RRBs)

Finance Minister Reviews Operational & Governance reforms in RRBs and performance of Kisan Credit Scheme (KCC) for Animal Husbandry, Dairying and Fisheries

Finance Minister instructs all the Public Sector Banks to onboard account aggregator system by end of July

FM advises IBA and sponsor banks to play a lead role in technological advancements in RRBs

Finance Minister directs banks to ensure time bound disposal of pending KCC applications

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired a meeting with heads of Public Sector Banks and Regional Rural Banks (RRBs) to review Operational & Governance reforms in RRBs and performance of Kisan Credit Card (KCC) scheme for Animal Husbandry, Dairying and Fisheries.

Finance Minister Smt. Sitharaman reviewed the performance of RRBs with heads of sponsor banks and chairmen of RRBs. The Finance Minister underlined the important role being played by RRBs in financial inclusion and serving the credit needs of rural economy. The Finance Minister urged the Sponsor Banks to formulate a clear roadmap in a time bound manner to further strengthen the RRBs and support the post pandemic economic recovery. Smt. Sitharaman further advised IBA and sponsor banks to play a lead role in technological advancements in the RRBs.

The Finance Minister suggested to conduct a workshop of RRBs so that they can share the best practices with each other.

Smt. Sitharaman instructed all the Public Sector Banks to onboard on account aggregator system by end of July.

In the second session, Smt. Sitharaman reviewed the progress in issuance of KCC to Animal Husbandry, Dairying and Fisheries Sector with Banks and RRBs. Union Minister for Fisheries, Animal Husbandry and Dairying Shri Parshottam Rupala also attended the session. Union Minister of State Finance Dr. Bhagwat Kisanrao Karad was also present during both the sessions.

With an aim to provide the benefits of KCC loans to maximum number of farmers, a special KCC saturation drive was launched under Atma Nirbhar Bharat Abhiyan to cover 2.5 crore farmers under KCC with a credit boost of Rs. 2 lakh crore. It is noteworthy that as on July 1st, 2022, 3.26 crore farmers (including 19.56 lakh Animal Husbandry, Dairy and Fisheries farmers) have been covered under the KCC scheme, with sanctioned credit limit of Rs. 3.70 lakh crore.

During the detailed review of performance, while highlighting the role of animal husbandry and fisheries in the economy, the Finance Minister directed banks for ensuring time bound disposal of pending KCC applications. FM also instructed banks to hold camps for saturating all those engaged in cattle rearing and fishing with KCC.

Shri Rupala lauded the efforts of banks in providing KCC to animal husbandry and fisheries farmer and urged them to take into account the special needs of small fishermen and those engaged in cattle rearing, while sanctioning loans under the KCC scheme.

Smt. Sitharaman instructed the officials to hold periodic review of the performance of the KCC scheme with all stakeholders so that the scheme benefits can reach to the maximum number of eligible beneficiaries.

Account aggregator system onboarding: public sector banks instructed to complete implementation by end of July to strengthen rural banking. The Finance Minister directed public sector banks to onboard the account aggregator system by the end of July, urged sponsor banks and the IBA to prepare a time bound roadmap and lead technological advancements for RRBs, and ordered time bound disposal of pending Kisan Credit Card (KCC) applications alongside saturation camps and periodic performance reviews to extend KCC benefits to eligible animal husbandry, dairying and fisheries beneficiaries.