RRBs should leverage lending in agriculture, MSME schemes: DFS Secretary
New Delhi: The government has urged regional rural banks (RRBs) to leverage their lending in agriculture and allied activities, MSMEs and government-sponsored schemes, with the implementation of the 'One State-One RRB' initiative.
M. Nagaraju, Secretary, Department of Financial Services (DFS) reviewed performance of RRBs and progress on amalgamation plan in Mumbai.
The DFS Secretary urged the rural banks to continue to focus on their amalgamation process and long-term sustainability.
RRBs have grown in their reach to more than 22,000 branches, covering 700 districts of the country and more than 92 per cent of its branches are in rural/semi urban areas.
They have recorded consolidated net profit of Rs 7,148 crore in FY 2024-25.
Gross non-performing assets (GNPA) reached a new low of 5.3 per cent, lowest in a decade period.
Nagaraju also asked sponsor banks to guide RRBs in their amalgamation process and provide level-playing field for long-term sustainability.
'Sponsor banks should continue to facilitate technology upgradation in RRBs and to complete integration process adhering to the strict timelines of 30-09-2025,' he said.
He also suggested sponsor banks and RRBs to also address HR-related issues emerging in the process.
The DFS Secretary asked sponsor banks and RRBs to recognise the challenges that lie ahead. Sponsor banks, in consultation with RRBs, were asked to draft a roadmap for RRBs for next five years.
NABARD Chairman and officials of DFS, sponsor banks, SIDBI, Reserve Bank of India and Chairpersons of all RRBs were also present at the meeting.
Last month, the Department of Financial Services notified the amalgamation of 26 Regional Rural Banks (RRBs) on the principles of 'One State One RRB' as part of the fourth phase of the continuing exercise to improve efficiency.
At present, 43 RRBs are functioning in 26 states and 2 UTs. Post amalgamation, there will be 28 RRBs in 26 states and 2 UTs with more than 22,000 branches covering 700 districts. Their predominant area of operation is in rural areas, with approximately 92 per cent of branches in rural and semi-urban areas.
RRBs play a crucial role in promoting rural economic development by providing financial services, particularly credit and other facilities, to small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs in underserved rural areas.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
26 minutes ago
- Time of India
Diversification, policy reforms aid Odisha's industrial progress: CM
1 2 3 4 Bhubaneswar: Ahead of the BJP govt's one-year anniversary, chief minister Mohan Charan Majhi on Sunday said that Odisha is becoming a "diversified industrial powerhouse" and a top investment destination in the country by not just approving investments worth Rs 4.5 lakh crore but also successfully grounding projects worth Rs 1.78 lakh crore. "Odisha is no longer just a minerals and metals hub. We are becoming a diversified industrial powerhouse, where opportunity flows from port to plant, and from cities to every aspirational district," the CM said during a meeting with leading industrialists and entrepreneurs in the city. "We are not merely sanctioning projects; we are grounding them. We are not making promises; we are delivering results — at scale, with speed, and with purpose," Majhi said. Mapping the industrial growth story, he said, "In just one year, we approved over 200 large and mega projects. Odisha now stands for credibility, competitiveness and commitment to progress." The CM said industries are diversifying from minerals and metals to green energy, agro-processing, technical textiles and shipbuilding, with investments flowing into 20 sectors. He attributed the success to proactive policy push like outcome-based governance and a "whole-of-govt model" that emphasises seamless coordination between departments and agencies. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 오스템 임플란트 받아가세요 임플란터 더 알아보기 Undo Roadshows in Delhi, Mumbai and Singapore have pitched Odisha as a hub for chemical, electronics, capital goods and advanced manufacturing, while two major events, Pravasi Bharatiya Divas and Utkarsh Odisha — Make in Odisha Conclave-2025, attracted global attention and industrial giants expanding the state's economic footprint, Majhi said. Majhi also spoke about the ambitious vision for 'Samruddha Odisha' by 2036, aligning with the centenary celebration of formation of the state. He outlined four key priorities in the upcoming year, including the launch of new policies targeting emerging and sunrise sectors, expansion of land banks, logistics corridors and critical infrastructure. He emphasised revamping the single-window system with digital-first project tracking and simplification of regulatory compliances to speed up approvals and encourage entrepreneurship. To support industrial labour, the state is developing 13 workers' hostels and modernising seven industrial estates with plug-and-play infrastructure. Furthermore, 30 MSME parks and 8 new industrial areas have been initiated to empower small enterprises and entrepreneurs. Industries minister Sampad Chandra Swain, MSME minister Gokulananda Mallik, development commissioner Anu Garg, and senior officers, among others, attended the event.
Time of India
an hour ago
- Time of India
Delhi to get 3 new water treatment plants, additional supply of 235 MGD
New Delhi: To address the growing water demand of its expanding population, Delhi will see the construction of three new water treatment plants, senior officials of (DJB) have said. Tired of too many ads? go ad free now These facilities will be located at Iradat Nagar, near Narela, Najafgarh in south-west Delhi, and Chhatarpur in south Delhi. Collectively, the new plants are expected to supply an additional 235 million gallons per day (MGD) of treated water to the capital. The Iradat Nagar and Chhatarpur plants will each have a capacity of 80 MGD, while the Najafgarh plant will have a capacity of 75 MGD. There are also proposals to source water for these plants from dams in Himachal Pradesh and Uttarakhand. Officials said a dam proposed on the Giri River in Himachal Pradesh is expected to supply 275 MGD of water to the capital. DJB has already provided Rs 214.84 crore to the Himachal Pradesh Power Corporation Limited (HPPCL) for the project. Similarly, DJB has also made financial commitments toward other proposed dams: Rs 8.1 crore for the Kishau Dam on the Tons River in Uttarakhand and Rs 7.7 crore for the Lakhwar Vyasi Dam on the Yamuna River, also in Uttarakhand. According to DJB officials, the city's current population exceeds 2.5 crore. Based on the standard requirement of 50 litres per person per day, Delhi requires about 1,250 MGD of water. However, the current supply falls short at around 990 MGD. At present, the city's nine water treatment plants together supply approximately 1,000 MGD. The new projects are part of a broader effort to bridge the supply gap and ensure consistent water availability amid rising demand. Tired of too many ads? go ad free now In recent years, several areas in Delhi have faced disruptions in water supply due to elevated ammonia levels in the Yamuna River, which hindered the operations of existing treatment plants. These ammonia surges resulted in periodic supply cuts, leaving some localities with little or no water. Last winter, the Wazirabad water treatment plant operated at half capacity due to contamination, while output from the Chandrawal plant was cut by 10%. The Haiderpur, Bawana, and Dwarka facilities also experienced reductions ranging between 5% and 10%, impacting large parts of the city. DJB's 2023 Economic Survey noted only a marginal increase in the capacity of the city's water treatment plants—from 943 MGD in 2022 to 946 MGD in 2023, a rise of just 0.31%. Despite supply challenges, Delhi govt continues to provide up to 20 kilolitres of free water monthly to households with metered water connections. To further strengthen the infrastructure, Delhi Jal Board will undertake a new Rs 300-crore project to lay an 11-kilometre pipeline. This initiative aims to mitigate intermittent water supply issues stemming from high ammonia levels in the Yamuna. The planned conduit will run from the Haiderpur Water Treatment Plant to the Wazirabad barrage, with work underway on detailed specifications and cost estimates.
New Indian Express
2 hours ago
- New Indian Express
Key highlights of new, unified gold and silver loan rules
The Reserve Bank of India (RBI) has raised the Loan-to-Value (LTV) ratio for loan against gold and silver to 85% for loans up to Rs 2.5 lakh. This is part of RBI's new comprehensive set of rules for lending against gold and silver. The new rules, which will be effective from 1 April 2026, attempts to standardise and harmonise the existing guidelines and introduce new measures for better oversight, conduct, and consumer protection. Here are the key highlights of the new rules: Scope and purview of the rules: These rules apply to all commercial banks (excluding Payments Banks), primary (urban) and rural cooperative banks, and all Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs). They cover loans for both consumption and income generation purposes where eligible gold or silver collateral is accepted. Clear credit policy: Lenders are required to have a clear credit policy that should stipulate limits for single borrower as well as for aggregate portfolio and maximum Loan-to-Value (LTV) ratios. The policy must also detail valuation standards, gold/silver purity norms, and documentation for priority sector lending. For loans exceeding ₹2.5 lakh, a detailed credit assessment, including repayment capacity, is now compulsory. Revised Loan-to-Value (LTV) ratio: The directions introduce a tiered maximum LTV ratio for consumption loans: Up to ₹2.5 lakh: 85% Above ₹2.5 lakh up to ₹5 lakh: 80% Above ₹5 lakh: 75% This prescribed LTV ratio must be maintained throughout the loan tenor. Standardised valuation procedures: Lenders must have a uniform procedure for measuring the purity and net weight of gold and silver collaterals. The rules require the presence of the borrower during assaying, with all deductions and defects clearly explained and documented in a certificate provided to the borrower. No loan against ETFs, bullion: Lenders cannot offer loans against primary gold or silver (bullion, ETFs). One can pledge only up to 1 kg of gold ornaments and 10 kgs of silver ornaments for availing loan. Loans against coins are limited to 50 grams for gold and 500 grams for silver. The tenure for bullet repayment consumption loans is capped at 12 months, with renewals subject to credit assessment and payment of accrued interest. SoP for Storage, auction, etc: Strict guidelines have been laid out for the handling, storage, and surprise verification of collateral. The lenders have now been asked to provide adequate notice to borrowers through regional and national newspaper advertisements before auctioning the pledged gold or silver. The first auction must be physical and conducted in the same district as the lending branch. Reserve prices are set at a minimum of 90% of current value, decreasing to 85% if the first two auctions fail. Compensation and Unclaimed Collateral: Borrowers will be compensated for any damage or loss to pledged collateral attributable to the lender. In cases of delay by lenders in releasing pledged collateral after full repayment, compensation of ₹5,000 per day will be paid to the borrower beyond the prescribed seven working days.
