Union Finance Minister Smt. Nirmala Sitharaman chaired a review meeting of Regional Rural Banks of Northern Region in New Delhi, today.
During the review meeting, the Union Finance Minister emphasised on digital capability upgradation of RRBs and instructed Managing Director & CEO, Punjab National Bank (PNB) to ensure that all RRBs with PNB acquire digital onboarding capability by 1st November 2023.
Finance Minister Smt. Sitharaman urged the RRBs to undertake removal of duplication of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts and facilitate storage facility for apple growers particularly in J&K and Himachal Pradesh.
The Union Finance Minister also said that banks should map RRBs with MSME clusters and put greater thrust on increasing network of rural branches in cluster areas identified by the Ministry of Micro, Small and Medium Enterprises.
Finance Minister Smt. Sitharaman further emphasised on increasing penetration under Pradhan Mantri Mudra Yojana (PMMY) and Financial Inclusion and stated that a roadmap has to be prepared for completing the designated activities in a timebound manner.
Also present during the meeting were Secretary, Department of Financial Services (DFS), Additional Secretary, other senior DFS officials, representatives of RBI, respective State Governments, NABARD, sponsor Banks and RRBs.
The PMJDY was announced by Prime Minister Shri Narendra Modi in his Independence Day address on 15th August 2014. While launching the programme on 28th August 2014, the Prime Minister had described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle.
Being one of the biggest financial inclusion initiatives in the world, the Ministry of Finance continuously endeavours to provide financial inclusiveness and support to the marginalised and economically backward sections through its financial inclusion led interventions. Financial Inclusion (FI) promotes equitable and inclusive growth as well as delivery of financial services at an affordable cost to vulnerable groups such as low-income groups and weaker sections that lack access to basic banking services.
Financial Inclusion also brings savings of the poor into the formal financial system and provides an avenue to remit money to their families in villages besides taking them out of the clutches of the usurious money lenders.
On the 9th anniversary of PMJDY, Union Finance Minister Smt. Nirmala Sitharaman, in her message said, “The 9 years of PMJDY-led interventions and digital transformation have revolutionised financial inclusion in India. It is heartening to note that more than 50 crore people have been brought into the formal banking system through the opening of Jan Dhan Accounts. Among these accounts, approximately 55.5% belong to women, and 67% have been opened in Rural / Semi-Urban areas. The cumulative deposits in these accounts surpass ₹2 lakh crore. Furthermore, about 34 crore RuPay cards have been issued to these accounts without charge, which also provides for a ₹2 lakh accident insurance cover.”
“With the collaborative efforts of stakeholders, banks, insurance companies, and government officials, the PMJDY stands out as a pivotal initiative, changing the landscape of financial inclusion in the country as envisioned by Hon’ble Prime Minister Shri Narendra Modi,” Smt. Sitharaman said.
Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad also expressed his thoughts for PMJDY on this occasion. He said, “PMJDY scheme has reduced financial untouchability by bringing the marginalised sections of the society into the ambit of formal banking. By providing access to banking facilities to vulnerable sections of the society, facilitating access to availability of credit, providing insurance and pension coverage and creating financial awareness, the outcomes of the scheme are far reaching and have a multiplier effect on the economy. Further, Jan Dhan–Aadhaar–Mobile (JAM) architecture has enabled successful transfer of Government benefits in the accounts of common man seamlessly. PMJDY accounts have become fulcrum of people-centric initiatives like DBT and has contributed towards inclusive growth of all sections of the society, especially the underprivileged.”
As we complete 9 years of successful implementation of this Scheme, we take a look at the major aspects and achievements of this Scheme so far.
Background
Pradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
Objectives:
Ensure access of financial products & services at an affordable cost
Use of technology to lower cost & widen reach
Basic tenets of the scheme
Banking the unbanked – Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges
Securing the unsecured – Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs
Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit
Initial Features of PMJDY
The scheme was launched based upon the following 6 pillars:
Universal access to banking services – Branch and BC
Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every eligible adult
Financial Literacy Programme– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking
Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults
Insurance – Accident cover up to Rs. 1,00,000 and life cover of Rs. 30,000 on account opened between 15 Aug 2014 to 31 January 2015
Pension scheme for Unorganised sector
Important approach adopted in PMJDY based on experience:
Accounts opened are online accounts in core banking system of banks, in place of earlier method of offline accounts opening with technology lock-in with the vendor
Inter-operability through RuPay debit card or Aadhaar enabled Payment System (AePS)
Fixed-point Business Correspondents
Simplified KYC / e-KYC in place of cumbersome KYC formalities
Extension of PMJDY with New features – The Government decided to extend the comprehensive PMJDY programme beyond 28.8.2018 with some modifications
Focus shifted from ‘Every Household’ to Every Unbanked Adult’
RuPay Card Insurance – Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakhs for PMJDY accounts opened after 28.8.2018.
Enhancement in overdraft facilities: OD limit doubled from Rs 5,000/- to Rs 10,000/-; OD upto Rs 2,000/- (without conditions) with Increase in upper age limit for OD from 60 to 65 years
Impact of PMJDY
PMJDY has been the foundation stone for people-centric economic initiatives. Whether it is direct benefit transfers, COVID-19 financial assistance, PM-KISAN, increased wages under MGNREGA, life and health insurance cover, the first step of all these initiatives is to provide every adult with a bank account, which PMJDY has nearly completed.
One in 2 accounts opened between March 2014 to March 2020 was a PMJDY account. Within 10 days of nationwide lockdown more than about 20 crore women PMJDY accounts were credited with financial assistance of Rs 500 per month for three months through DBT in each women PMJDY account.
During COVID-19 pandemic, we have witnessed the remarkable swiftness and seamlessness with which Direct Benefit Transfer (DBTs) have empowered and provided financial security to the vulnerable sections of society. An important aspect is that DBTs via PMJDY accounts have ensured every rupee reaches its intended beneficiary and preventing systemic leakage.
PMJDY has brought the unbanked into the banking system, expanded the financial architecture of India and brought financial inclusion to almost every adult.
Achievements under PMJDY- As on 16th August’23:
PMJDY Accounts
As on 9th August 23 number of total PMJDY Accounts: 50.09 crore; 55.6% (27.82 crore) Jan-Dhan account holders are women and 66.7% (33.45 crore) Jan Dhan accounts are in rural and semi-urban areas
During first year of scheme 17.90 crore PMJDY accounts were opened
Continuous increase in no of accounts under PMJDY
PMJDY Accounts have grown three-fold (3.4) from 14.72 crore in March 15 to 50.09 crore as on 16-08-2023. Undoubtedly a remarkable journey for the Financial Inclusion Programme.
[Deposits under PMJDY accounts –
Total deposit balances under PMJDY Accounts stand at Rs. 2,03,505 crore
Deposits have increased about 13 times with increase in accounts 3.34 times (Aug’23 / Aug’15)
Average Deposit per PMJDY account –
Average deposit per account is Rs. 4,063 as on 16.08.2023
Avg. Deposit per account has increased over 3.8 times over August 15
Increase in average deposit is another indication of increased usage of accounts and inculcation of saving habit among account holders
RuPay Card issued to PMJDY account holders
Total RuPay cards issued to PMJDY accountholders: 33.98 crore
Number of RuPay cards & their usage has increased over time
Jan Dhan Darshak App (JDD App)
JDD App is a mobile application which provides a citizen centric platform for locating banking touch points such as bank branches, ATMs, Banking Correspondents (BCs), Indian Post Payment Banks etc. in the country. Over 13 lakh banking touchpoints have been mapped on the JDD App. The facilities under Jan Dhan Darshak App could be availed as per the need and convenience of common people. The web version of this application could be accessed at the link findmybank.gov.in.
This app is also being used for identification of villages which are yet to covered by banking outlets within 5 km radius. These identified villages are allocated to various banks by concerned SLBCs for opening of banking outlets. The efforts have resulted in a significant decrease in number of uncovered villages.
A total of 6.01 lakh villages are mapped on the JDD app as of July 2023. Out of these, 5,99,468 (99.7%) of total mapped villages are covered with banking outlets (Bank branch, Banking corner or Indian Post Payment Banks (IPPB) within 5 km radius).
Towards ensuring smooth DBT transactions
As informed by banks, about 6.26 crore PMJDY accountholders receive direct benefit transfer (DBT) from the Government under various schemes. To ensure that the eligible beneficiaries receive their DBT in time, the Department takes active role in identification of avoidable reasons for DBT failures in consultation with DBT Mission, NPCI, banks and various other Ministries.
Digital transactions: With the issue of over 33.98 crore RuPay debit cards under PMJDY, installation of 79.61 lakh PoS/mPoS machines and the introduction of mobile based payment systems like UPI, the total number of digital transactions have gone up from 1,471 crore in FY 17-18 to 11,394 crore in FY 22-23. The total number of UPI financial transactions have increased from 92 crore in FY 2017-18 to 8,371 crore in FY 2022-23. Similarly, total number of RuPay card transactions at PoS & e-commerce have increased from 67 crore in FY 2017-18 to 126 crore in FY 2022-23.
The road ahead
Endeavour to ensure coverage of PMJDY account holders under micro insurance schemes. Eligible PMJDY accountholders will be sought to be covered under PMJJBY and PMSBY. Banks have already been communicated about the same.
Promotion of digital payments including RuPay debit card usage amongst PMJDY accountholders through creation of acceptance infrastructure across India
Improving access of PMJDY account holders to Micro-credit and micro investment such as flexi-recurring deposit etc.
The three-day Chintan Shivir of the Ministry of Finance and Ministry of Corporate Affairs concluded in Kevadia, Gujarat, today. Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired the Chintan Shivir in presence of Union Ministers of State for Finance Shri Pankaj Chaudhary and Dr. Bhagwat Kisanrao Karad.
The Chintan Shivir was attended by senior officials of Ministry of Finance and Ministry of Corporate Affairs. The Finance Secretary, Secretaries from D/o Economic Affairs (DEA), D/o Investment and Public Asset Management (DIPAM), D/o Revenue (DoR), D/o Financial Services (DFS) and Ministry of Corporate Affairs, Chief Economic Advisor, Chairmen of CBDT and CBIC were also part of the deliberations.
Free and frank discussions were held by more than 100 senior officers of MoF and MCA on how to re-orient to achieve the Amrit Kaal goals by embracing the Panch Pran as envisioned by Prime Minister Shri Narendra Modi.
Interactive sessions were held on the “Role of Ministry of Finance and Ministry of Corporate Affairs in Amrit Kaal”, “Building our Capacities”, and “Improving our Efficiencies”.
Smt. Sitharaman advised the officers to optimally utilise the vast pool of resources and experience at disposal in the Government. The Finance Minister underlined mentoring of young generations to embellish efforts in the march toward Viksit Bharat of 2047 in the Amrit Kaal.
Smt. Sitharaman urged the officers to go beyond to explore frontiers beyond their set roles and make an extra impact on other domains as well so that synergistic thoughts emerge which can be useful for the overall Ministry.
In her concluding remarks during the Chintan Shivir, the Union Finance Minister stated that both effectiveness and efficiency are long-term phenomenon and consistency in reform policy, with focus on both, individual and institutional efficiencies, are vital ingredients in public service delivery.
Referring to phenomenon of information overload as counter-productive to effectiveness and efficiency, the Union Finance Minister emphasised that both MoF and MCA must strive for simplification of processes with focus on not just the whole-of-Government-approach, but also whole-of-the-country approach to maximise delivery and engagement.
Smt. Sitharaman urged MoF and MCA senior officers to continuously mentor the new entrants/younger colleagues to develop the wherewithal in delivering results in the Amrit Kaal and beyond making Viksit Bharat by 2047. The Union Finance Minister also emphasised on the need to continuously reorient policy in the cultural context and to instil a sense of ownership in decision-making, to enhance effectiveness with efficiency.
During the discussions, Union Minister of State for Finance Shri Pankaj Chaudhary called for ambitious target-orientation for productively achieving goals towards India’s journey in becoming a developed country by 2047.
In his remarks during the session, Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad emphasised on building self-confidence through knowledge and skilling. Dr. Karad said that decisions must be made in consultation with knowledgeable partners and stakeholders besides developing appropriate feedback mechanism for real-time assessment of delivery.
The Session on the “Role of Ministry of Finance and Ministry of Corporate Affairs in Amrit Kaal” focused on enabling growth and stability, and focused on the following four themes:
Capital Formation and Retention
Inclusive Growth
Aatmanirbhar Bharat
Strengthening Public Finance
During the session on “Building our Capacities”, discussions revolved around:
Building Professional Capacity
Building Personal Capacity
Work-life Balance Capacity
Institutional Capacity
The discussions during the session were focused on various aspects of capacity-building in the areas of human resource and institutions, role of technology and software-enabled systems, intra and inter-ministerial consultations, importance of training at various levels, and mentoring young blood for leading roles in Amrit Kaal in the journey towards building strong and resilient India Viksit Bharat by 2047.
During the session on “Building our Efficiencies”, in-depth discussions were held on:
Enabling skilled and motivated workforce
Robust internal processes
Coordination and engagement with internal stakeholders
Focus on external stakeholders
Changing organisational culture
The discussions in the session revolved around skilling, maintaining robust organisational processes, streamlining file management systems and expediting decision-making in MoF and MCA, onboarding of stakeholders from the start, citizen-friendly technology tools, leveraging technology and use of AI for future-readiness, whole-of-Government-and-holistic approach towards public service delivery, time-bound delivery of citizen-centric services, removing duplicity of effort, and leveraging technology and use of AI for future-readiness.
On the sidelines of the Chintan Shivir, Union Finance Minister also interacted with the G20 Finance Track India Team. The G20 Finance Track Team shared thoughtful introspections with Smt. Sitharaman on various aspects of navigating the first nine months of Indian G20 Presidency.
Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman chaired a review meeting, along with a team of Secretaries from the Ministry of Finance and Ministry of Corporate Affairs, on the development and growth of India’s maiden International Financial Services Centre (IFSC) at GIFT City, Gandhinagar, here today.
The visit, organised by GIFTCL in collaboration with the State Government of Gujarat, saw the presence of Shri Kanubhai Desai, Minister of Finance, Energy & Petrochemicals, Government of Gujarat besides Chief Secretary, Government of Gujarat, and other senior officials of the state. All Indian financial sector regulators also participated in the review meeting.
Presentations were made by Chairman GIFT City, Chairman, International Financial Services Centre Authority (IFSCA) and officials of the Government of Gujarat on important milestones and achievements in the journey of India’s maiden IFSC in the past few years, especially since the inception of IFSCA, along with various policy support and incentives extended by the Government.
During the review meeting, the Union Finance Minister emphasised on the need for all stakeholders to recognise and support the identified pathways to elevate GIFT City as a premier financial hub so that it stands out as the best among its contemporaries on the global scale.
Smt. Sitharaman further said that as envisioned by Prime Minister Shri Narendra Modi, GIFT City should emerge not only as a lively international centre but also as a global leader in devising solutions to intricate financial challenges, especially in the climate of the current global economic headwinds.
The Union Finance Minister underlined that since GIFT IFSC has been recognised as a fast-moving International Financial Centre, priorities should be set out for attracting more and more business and creating large-scale investment.
Smt. Sitharaman exhorted both IFSCA and IRDAI to proactively engage with leading global insurance companies to establish GIFT as a premier global hub for insurance and reinsurance.
Union Finance Minister also emphasised on using maximum potential of Indian International Bullion Exchange IFSC (IIBX) in ensuring disintermediation and efficient price discovery and asked RBI to pilot the import of TRQ gold under UAE CEPA through IIBX, which can pave the way for Indian banks efficiently using the IIBX platform.
Smt. Sitharaman mentioned that sunrise niche areas such as logistics for precious metals, global insurance, aircraft-and-ship leasing should expand the portfolio of services provided out of GIFT city.
The Union Finance Minister appreciated swift actions in streamlining approvals and accelerating infrastructure development, especially to the two Australian universities in line with the Budget 2022-23 announcements. This has helped in garnering interest from numerous global universities in the GIFT-IFSC.
The introduction of amenities such as a central park and food courts has notably enhanced the vibrancy and appeal of GIFT City, Smt. Sitharaman added.
Union Finance Minister also asked that the Direct Listing of Indian shares on IFSC exchanges already approved by the Government of India must be advocated amongst relevant stakeholders.
With reference to making GIFT City as the global hub for accounting and financial back-office functions, Smt. Sitharaman noted that a comprehensive legal framework, catering to accounting, auditing, and taxation professionals, will soon be in place to enable them to provide the services to the world. Additionally, the Union Minister urged all financial sector regulators to collaborate in stimulating business activities in GIFT-IFSC.
Later, the Union Finance Minister visited IFSCA Headquarters in GIFT City and addressed the members of the IFSC Authority along with Secretaries of the Ministry of Finance and Ministry of Corporate Affairs.
The Union Finance Minister commended all members for their contributions to IFSC’s journey thus far and emphasised the importance of sustained efforts to cultivate a favourable environment, and position GIFT-IFSC as a leading global financial gateway.
Indian Presidency hosted the G20 Joint Finance and Health Ministers Meeting, attended by Health Ministers and Finance Ministers (virtually) on 19th August 2023, in Gandhinagar, Gujarat. The meeting was co-chaired and opening remarks were delivered by Smt. Nirmala Sitharaman, Minister of Finance, and Shri Mansukh Mandaviya, Minister of Health, Government of India. Dr. Tedros Ghebreyesus, Director General of WHO gave an update on global health from the perspective of emerging/post pandemic scenario. Ms. Priya Basu, the Executive Head of the Pandemic Fund provided an update on the activities of Pandemic Fund.
The Executive Head of the JHFTF Secretariat, Ms. Serina Ng, made a presentation on the key deliverables brought out under the Indian Presidency;
The Framework for Economic Vulnerabilities and Risks (FEVR)
The Report on Mapping Pandemic Response Financing Options and Gaps
The Report on Best Practices on Finance Health Institutional Arrangements during Covid-19.
G20 Finance and Health Ministers agreed on continuous strengthening of the global health architecture for pandemic prevention, preparedness and response (PPR) through enhanced collaboration between Finance and Health Ministries. Ministers welcomed the multi-year work plan of the Task Force, approved under the Indian Presidency. Ministers welcomed the reports developed by the Task Force under the Indian Presidency, since these reports not only help members deepen their understanding of how future pandemics can impact the economy but also brought out the gaps in existing pandemic response institutional/funding arrangements. Some of the views expressed by countries in the discussions were those that are suggestive of future course for the Task Force including but not limited to development of an operational play book to ensure swift and adequate pandemic response financing; development of pandemic stress test; strengthening the supportive role of Task Force to WHO in global health architecture while duly considering country specific circumstances.
Ministers welcomed the conclusion of the first call for proposals of the Pandemic Fund and stated they look forward to the second call for proposals by the end of 2023.
Smt. Nirmala Sitharaman, Minister of Finance, concluded the meeting by thanking the co-chairs, Italy and Indonesia and other participants.
A common thread in India’s G20 Presidency agenda is ‘How to prepare for a better tomorrow for all’, stated Union Finance and Corporate Affairs Minister Nirmala Sitharaman today. The finance track has seen the delivery of a sizeable number of outcomes, most of which will contribute towards addressing the present and emerging global economic challenges. India has piloted a huge amount of work in various tracks in more than eight months since India assumed G-20 Presidency, she added. “So far we have ensured that geo-political differences do not supersede the core G20 mandate of international co-operation”, she further said. The Union Finance Minister was delivering the keynote address virtually, in a seminar on ‘Global Economy: Challenges, Opportunities and the Way Forward’ jointly organized by the Department of Economic Affairs, Ministry of Finance and Reserve Bank of India, under the aegis of Finance Track of India’s G-20 Presidency, in Mumbai today. The seminar organized as a part of the International Financial Architecture (IFA) and the Frameworks Working Group under India’s G-20 Presidency, in run-up to the G-20 Leaders’ Summit in September 2023, had three sessions on: ‘Development financing for the 21st century and financing of Global Public Goods’, ‘Managing Global Debt Vulnerabilities’ and ‘Key Global Risks: Inflation, Financial Stability and Climate Change’.
The Finance Minister stated that primary focus of the Indian G-20 Presidency in 2023 has been to strengthen Multilateral Development Banks (MDBs), to address the shared global challenges of the 21st century which they are facing. But, MDBs are also facing increasing demands from donor and borrowing countries to expand their lending operations beyond their core development mandates. However, MDBs are not currently equipped to address this rising demand for their resources adequately, she added. The Finance Minister said, another issue discussed in the G-20 Finance Track is ‘Escalation of Debt Issues in Vulnerable Economies’, which poses significant economic risks to their sustainable development. The Indian G-20 Presidency has given great importance to the management of global debt vulnerabilities, demonstrating a commitment to voicing the concerns of the Global South, she stated. Finance Minister also stated that, under the G-20 India Presidency, the digital public infrastructure has been integrated into G-20 discussions with member countries recognizing its capacity to enhance productivity and to accelerate financial inclusion.
Finance Minister also stated that “the upcoming synthesis paper developed by the IMF and the FSB, coupled with a roadmap will be instrumental in shaping future regulatory measures for crypto- assets”.
Strengthening Multilateral Development Banks:
Speaking about the issues faced by MDBs, Finance Minister said, after decades of integration, the global economy is starting to witness increasing fragmentation and unravelling multilateralism and that is affecting the MDBs.
Finance Minister Nirmala Sitharaman said, the Indian G-20 Presidency had set up an Independent Expert Group on Strengthening MDBs. The Expert Group, in the Volume-I of their Report has proposed a triple agenda, comprising three crucial recommendations for the MDBs, which are as follows:
i) To tackle global challenges, alongside their core mission of poverty reduction and shared prosperity
ii) To triple their sustainable lending level by 2030
iii) To enhance their financial strength to capital adequacy improvements and general capital increases.
Finance Minister Nirmala Sitharaman said that, implementing these recommendations within each MDB’s governance framework can significantly enhance their capacity to address diverse financing challenges in the future with a focus on the priorities of the Global South
The Vol. II of the Report is expected to be submitted before the 4th Working Group and Ministerial Meeting of the G-20 Finance Track in October, 2023.
Escalation of Debt Issues in Vulnerable Economies:
Finance Minister said, “We have made significant efforts in providing momentum for debt treatment for some countries”. She urged the international community to collaborate and find stronger ways to coordinate debt restructuring for low income, vulnerable and middle income countries facing debt distress.
Finance Minister Nirmala Sitharaman further said, G-20 also stresses on the criticality of debt vulnerability in low and middle income countries through an effective, comprehensive and systematic approach. By restructuring existing debts and enhancing access to affordable finance, the international community can contribute to releasing financial resources in debtor countries to shield vulnerable populations from economic hardships.
Digital Public Infrastructure (DPI):
In her address, the Finance Minister also said, unlocking the full potential of digital progress for all is essential for a fair and inclusive future in this era of technological transformation. She said, despite notable advancements, disparities in access, usage and quality of financial services persists among vulnerable populations and micro, small and medium enterprises.
Finance Minister further said, G-20 policy recommendations for advancing financial inclusions and productivity gains through DPI, meticulously developed under India’s leadership have garnered unanimous acceptance across G-20 members. These can guide both G-20 and non-G-20 countries in harnessing DPI for inclusive and robust growth. “We are striving to lay the foundation for a robust regulatory landscape that encourages innovative, while ensuring macro-economic and financial stability”, the Minister added.
Infrastructure Financing:
Nirmala Sitharaman also stated, Indian G-20 Presidency has also emphasized innovative financial models to mobilize private sector investments and address infrastructure financing gaps which is crucial for building future cities. “We have laid the groundwork for G-20 principles for financing cities of tomorrow. This framework holds the potential to guide MDBs and other development financing institutions, in their planning and financing of sustainable urban infrastructure”, she said.
RBI Governor Shaktikanta Das in his closing remarks said, today’s panel discussion topics are priorities under India’s G-20 Presidency. Policymakers across the world today are grappling with multifarious and intertwined challenges in ensuring post-pandemic recovery in the face of elevated inflation, financial market vulnerabilities, reduced policy headroom and geo-political tensions. In this milieu, India’s G-20 Presidency aims at enhancing global cooperation to face such challenges, he stated.
The Chief Economic Advisor, Ministry of Finance, Dr. V. Anantha Nageswaran highlighted the key emerging challenges in the global policy landscape and how Indian G-20 Presidency under the theme of One Earth, One Family, One Future, has worked towards steering the global economy towards a strong, sustainable and balanced inclusive growth.
Union Finance Minister Smt Nirmala Sitharaman chaired a meeting with Chairpersons and senior officials of Regional Rural Banks from Southern Region, in Chennai today. The meeting was attended by Secretary Department of Financial Services Dr Vivek Joshi and senior RBI officials. Finance Sercretary of Tamil Nadu Shri T. Udhayachandran, Secretaries and senior officiers from state Finance Ministries of Andhra Pradesh, Telangana, Kerala, Puducherry and Karnataka were present at the meeting. The Managing Directors and CEOs of State Bank of India, Indian Bank, Union Bank of India, Canara Bank, Indian Overseas Bank and NABARD also took part in the discussions.
The deliberations revolved around financial performance of Regional Rural Banks as DFS Secretary gave a presentation on various financial metrics of the RRBs.
Finance Minister Smt. Nirmala Sitharaman stressed that the Regional Rural Banks should continue their focus on the flagship schemes of the Central Government such as Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, PM SVANidhi, Atal Pension Yojana, PM Jan Dhan Yojana, PM Mudra Yojana, Kisan Credit Cards (KCC), KCC Animal Husbandry & Fisheries, etc and aim for their saturation.
While highlighting that the CD Ratio, Gross NPAs, and Provision Coverage Ratio (PCR) of Regional Rural Banks of the Southern region was better than the national average, Smt. Nirmala Sitharaman exhorted the RRBs and Sponsor Banks to improve Current and Savings Account (CASA) Ratio of RRBs.
The Union Finance Minister stated that better adoption of technology, Loan Management System and Core Banking System should be done in a time-bound manner in the RRBs of the Southern region. The Finance Minister further said that RRBs should focus on increasing digitally active customers in line with government’s effort to move towards greater digitalisation.
Finance Minister also said that Sponsor Banks should map RRBs with MSME clusters and improve their presence in these clusters, while devising innovative products for the MSME to serve them in a better way. She exhorted RRBs from the region to work closely with the RBI and State Authorities concerned to improve their physical presence across the state. She also highlighted leveraging Account Aggregator Framework especially for lending to the Allied agricultural sector like fisheries and animal husbandry, besides granting loans to street vendors under PM SVANidhi scheme.
