Easier credit for farmers post RRB recapitalisation
The government is set to strengthen all loss-making regional rural banks (RRBs) and partner with private sector banks to provide credit to farmers at their doorstep.
By TNN |
NEW DELHI: The government is set to strengthen all loss-making regional rural banks (RRBs) and partner with private sector banks to provide credit to farmers at their doorstep, minister of state for finance PK Bansal said on Tuesday.
The Centre has committed funds for recapitalising 29 ailing RRBs, an important tool for financial inclusion, the minister said at the India rural business summit here. The Centre’s commitment is around Rs 1,850 crore while state governments, who own 15% of these banks, have to come up with a proportionate amount.
After consolidation, the number of RRBs have come down to 96 from 196. Out of the 96 RRBs, 29 are making losses now. The Centre owns 50% in RRBs, sponsored public sector banks hold 35% while states hold 15%.
Mr Bansal said that some banks have started using hand-held devices to dispense cash to farmers at their doorsteps, besides introducing them to the banking system through ‘no frills’ accounts and ‘kisan’ credit cards. “There are only 70,000 bank branches in the country as against six lakh villages. We will rope in all the banks that have pioneered in this to ensure that credit is made available to all,” the minister said at the summit organised by Ficci.
These efforts are aimed at bridging the deficits in terms of public investment, infrastructure, market economy and knowledge that exists in the agriculture and rural sector, he said.
The Centre has committed funds for recapitalising 29 ailing RRBs, an important tool for financial inclusion, the minister said at the India rural business summit here. The Centre’s commitment is around Rs 1,850 crore while state governments, who own 15% of these banks, have to come up with a proportionate amount.
After consolidation, the number of RRBs have come down to 96 from 196. Out of the 96 RRBs, 29 are making losses now. The Centre owns 50% in RRBs, sponsored public sector banks hold 35% while states hold 15%.
Mr Bansal said that some banks have started using hand-held devices to dispense cash to farmers at their doorsteps, besides introducing them to the banking system through ‘no frills’ accounts and ‘kisan’ credit cards. “There are only 70,000 bank branches in the country as against six lakh villages. We will rope in all the banks that have pioneered in this to ensure that credit is made available to all,” the minister said at the summit organised by Ficci.
These efforts are aimed at bridging the deficits in terms of public investment, infrastructure, market economy and knowledge that exists in the agriculture and rural sector, he said.
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