Nirmala Sitharaman Reviews Performance of 5 States RRB in Udaipur

Regional Rural Banks (RRB) Meeting in Udaipur, Rajasthan

Date: 22 August 2024

Location: Udaipur, Rajasthan

Chaired by: Union Finance and Corporate Affairs Minister Nirmala Sitharaman

Performance Review

States Covered: Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Maharashtra

Banks Reviewed: Nine Regional Rural Banks operating in these states

Meeting Agenda

Topics Discussed:

• Financial performance of RRBs
• Upgrading digital technology services
• Promoting business growth in MSME clusters
• Enhancing financial inclusion in rural areas

Key Directives

Nirmala Sitharaman emphasized expanding MUDRA schemes in the Bundelkhand region of Madhya Pradesh and other aspirational districts.

RRBs were urged to become more customer-friendly and improve their performance.

About Regional Rural Banks (RRBs)

Establishment: 1975, based on recommendations from the Working Group on Rural Banks led by M. Narasimham

Purpose: Provide banking facilities and affordable credit to rural populations

Regulation: By the Reserve Bank of India (RBI)

Ownership: Central Government, State Government, and Sponsoring Banks

First RRB: Prathama Bank in Moradabad, U.P., sponsored by Syndicate Bank, established on 2 October 1975

Legislation: The Regional Rural Bank Act, 1976 (amended in 2015)

Current Status

• 43 RRBs in India, sponsored by 12 commercial banks
• Operate in 26 states and 3 Union Territories
• No RRBs in Sikkim and Goa
• Jammu and Kashmir Bank is the only private sector bank sponsoring an RRB
• Punjab and Sindh Bank are the only public sector banks that have never sponsored an RRB