"Govt aims to make regional rural banks sustainable through increased MSME lending"

The government has asked Regional Rural Ban ks (RRBs) to improve their lending to the Micro, Small and Medium Enterprises (MSME) sector to expand their credit base in order to become financially sustainable. Centre has also noted that the RRBs need to adopt digitisation including offering internet banking services to its customers as a part of its reform. The government wants them to work towards increasing their earnings as the cost of operations of RRBs were much lower as compared to scheduled commercial banks but that has increased now, as per a report by Indian Express.

These measures were discussed in July during a meeting convened by Finance Minister Nirmala Sitharaman and attended by heads of sponsor banks and RRBs.

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