Finance Ministry to hold review meeting with CEOs of PSU Banks amid RRB amalgamation on 30 January

NEW DELHI: In order to review the performance of Regional Rural Banks after amalgamation, the Finance Ministry is scheduled to hold a meeting with heads of Public Sector Banks and Chairpersons of Regional Rural Banks (RRBs) on January 30. The meeting will be chaired by Department of Financial Services Secretary M Nagaraju and likely to be attended by NABARD Chairman, SIDBI CMD, and Executive Director concerned of RBI, according to sources. This will be the first-ever high-level meeting after the fourth round of consolidation of RRBs effective May 1. The consolidation of RRBs has reduced the number of RRBs from 43 to 28. The meeting would review financial performance of RRBs after the amalgamation, according to sources.

This meeting would review progress of priority sector lending and various financial schemes undertaken by RRBs. The state-owned RRB on 1st May has become a reality following the consolidation of 15 RRBs across 11 states to achieve better operational efficiency and coast rationalisation.

The Number of RRBs was reduced from 196 to 82 in Phase 1 (FY 2006 to FY 2010). Further, it was brought down from 82 to 56 in Phase 2 (FY 2013- FY 2015) and in Phase 3, it was reduced from 56 to 43. The centre currently holds a 50% stake in RRBs while 35% and 15% are with the concerned sponsor banks and state governments, respectively.