IT Integration of Regional Rural Banks to Be Finalised by September 15, NABARD Chairman Confirms

NABARD Chairman Shaji KV announced that the IT integration of Regional Rural Banks (RRBs), following the One State One RRB principle, is set to finish by September 15. The amalgamation, effective from May 1, aims to enhance efficiency and reduce costs. Currently, there are 28 RRBs across 26 states and two union territories, with over 22,000 branches serving 700 districts.

Shaji highlighted that NABARD is developing a unified digital infrastructure for RRBs. This includes credit systems and government data access to better serve rural areas. Despite challenges like limited internet bandwidth and awareness, efforts are underway with various organisations to overcome these hurdles.

Digital Initiatives and Challenges

Digitising agricultural value chains is a priority, with around 20 already digitised. NABARD collaborates with banks to include more farmers, especially those lacking land records. Blockchain-based crop traceability and Business Correspondent networks are also being explored for improved rural outreach.

The government is working on additional digital frameworks such as Agri Stack for agriculture, Fisheries Stack, and Cooperative Stack. The Cooperative Stack aims to unify various schemes through Primary Agricultural Credit Societies, enhancing benefit distribution in rural regions.

Focus on Financial Inclusion

NABARD leads cooperative digitisation, with approximately 70,000 societies already digitised. Through the financial inclusion fund, NABARD supports pilot projects with NGOs and FinTechs. Addressing the rural-urban income gap is crucial as two-thirds of the population contributes only one-third of national income.

Efforts are focused on transforming farmers into agribusiness entrepreneurs. NABARD is establishing a sandbox environment to share anonymised data with fintech companies. This initiative aims to foster innovation and equitable growth in rural areas.

Shaji emphasised that NABARD's initiatives aim to ensure balanced development across rural regions. By integrating technology and financial systems, they strive to empower farmers and bridge the income divide between urban and rural populations.

With inputs from PTI