Shillong, Oct 1: Union Finance Minister Nirmala Sitharaman has signalled a larger push towards integrating modern banking with rural aspirations, boosting the entrepreneurial spirit, and paving the way for a more self-reliant North East.
The Finance Minister began her visit to Arunachal Pradesh with a strong call to action for Regional Rural Banks (RRBs), urging them to play a more significant role in rural economic development. Kicking off her three-day tour, Sitharaman chaired a high-level meeting in Itanagar to review the performance of RRBs across the North East, a region often hailed for its untapped agricultural potential and vibrant MSME sector.
The meeting was attended by officials from the Reserve Bank of India (RBI), NABARD, and SIDBI
Regional Rural Banks (RRBs) were established in 1975 under the provisions of the Ordinance promulgated on the 26th September 1975, followed by Regional Rural Banks Act, 1976 with a view to develop the rural economy and to create a supplementary channel to the ‘Cooperative Credit Structure’ and enlarge the institutional credit system for the rural and agriculture sector.
The RRBs mobilise deposits primarily from rural/semi-urban areas and provide loans and advances mostly to small and marginal farmers, agricultural labourers, rural artisans and other segments of priority sector.
The minister highlighted the urgent need to upgrade digital banking services and extend greater credit support to agriculture and allied sectors.
Sitharaman underscored the pivotal role of RRBs in fostering rural livelihoods, encouraging them to identify beneficiaries for government schemes such as PM Vishwakarma, and to intensify credit disbursement in niche areas like horticulture, piggery, poultry, dairy, and fisheries. These sectors, she noted, are the backbone of many rural communities and could become the engine of economic growth with the right support.
M. Nagaraju, Secretary of the Department of Financial Services, along with senior officials from the finance departments of all seven northeastern states—Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura—also attended, making this a landmark gathering aimed at reshaping the financial landscape in the region.
The next leg of Sitharaman’s tour will take her to Namsai, where she is set to inaugurate a new SBI Regional Business Office, marking yet another step toward expanding financial inclusion. The visit will culminate on October with her participation in the “Swachhata Hi Seva” campaign, reinforcing the government’s commitment to cleanliness and community welfare.
