Union Minister of Finance and Corporate Affairs Nirmala Sitharaman on Thursday urged Karnataka Grameena Bank (KaGB) to scale up agriculture and rural credit to meet the growing financial needs of emerging rural India.
During a review meeting held on October 16, Sitharaman assessed KaGB’s performance on credit growth, non-performing assets, financial inclusion, and implementation of government-sponsored schemes. She directed the bank to focus on ground-level agriculture lending, particularly in emerging sectors, and work with state departments to boost credit flow to MSMEs and allied activities.
Highlighting opportunities created by the rationalisation of GST rates, the Finance Minister said rural banks should leverage increasing consumption in semi-urban and rural areas to meet credit demand. She also asked banks to upgrade products and services to suit Farmer-Producer Organisations, ensuring efficient use of resources and sustainable rural development.
Sitharaman emphasised the need for KaGB to expand its presence in Kalyan, Karnataka, improve operational efficiency, strengthen asset quality, adopt technology, and enhance customer service. She also directed banks to engage with local committees for better screening of applications under schemes such as PM-Vishwakarma and PMFME.
Secretary, Department of Financial Services, highlighted the potential in agro-processing and MSMEs and urged KaGB to partner with NABARD to increase value creation for farmers. He also appreciated the bank’s performance under Atal Pension Yojana and encouraged improvement in other financial inclusion schemes such as PMJJBY, PMSBY, and PMJDY. |
