Sitharaman Reviews Performance of Regional Rural Banks

Union Finance Minister Nirmala Sitharaman recently convened a review meeting in Udaipur with the heads of nine Regional Rural Banks (RRBs) from Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh, and Rajasthan, focusing on improving credit flow to the MSME sector and enhancing awareness of government schemes in aspirational districts. She emphasized the need for RRBs to upgrade their technology and foster business growth in MSME clusters to deepen financial inclusion in rural areas. Sitharaman urged the banks to collaborate more effectively to benefit the public and improve customer relations. The meeting also addressed the performance of the MUDRA scheme and identified strategies to tackle challenges within the banking sector. Additionally, the Finance Minister called for a deposit mobilisation drive among state-run banks to match loan growth as younger investors shift to mutual funds and equities. She highlighted the importance of banks enhancing cybersecurity measures to protect customer data.