Increase agricultural credit to meet rural India's demands: Nirmala Sitharaman to banks
Ballari(PTI): Union Finance Minister Nirmala Sitharaman has urged rural banks to increase agricultural credit disbursement to meet the growing demand of new rural India, while reviewing the business performance of Karnataka Grameena Bank (KaGB) here.
According to an official statement, Sitharaman chaired the meeting, attended by Department of Financial Services (DFS) Secretary M Nagaraju, NABARD Chairman Shaji K V, and other senior officials from the finance ministry on Thursday.
During the review, Sitharaman assessed key indicators, including credit growth, NPAs (Non-Performing Assets), financial inclusion, and the implementation of government-sponsored schemes by KaGB.
She advised the bank to increase its share in ground-level agriculture credit disbursement, with special focus on emerging areas of the economy.
Sitharaman also directed all stakeholders to take steps to realise the potential of allied agricultural activities in the region.
“KaGB and Canara Bank should work closely with state government departments to enhance credit disbursement to the MSME and allied sectors,” the statement said.
Referring to the rationalisation of GST rates, Sitharaman said it has opened new opportunities in rural areas due to rising consumption, indicating greater funding potential for banks.
She nudged rural banks to leverage this opportunity to meet credit requirements in semi-urban and rural regions.
Highlighting the capital needs of Farmer-Producer Organisations (FPOs), Sitharaman said, “While their capital requirements are often met by development financial institutions and government departments, their working capital needs should be fulfilled by banks.”
She emphasised that rural banks should upgrade products and services to suit the convenience and demand of FPOs, enabling both banks and FPOs to leverage resources for mutual benefit and sustainable rural growth.
Sitharaman further pointed out that many companies are relocating services, including data centres, from tier-1 to tier-2 and tier-3 cities, and insisted that rural banks focus on such emerging areas to strengthen their financial health.
She added that KaGB should focus on improving business operations to make the bank profitable and overcome challenges posed by stressed assets.
Sitharaman also advised KaGB and its sponsor bank to collaborate with panchayat and district-level committees to improve the screening of applications under government schemes such as PM-Vishwakarma and PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises).
She called on KaGB to expand its presence in the Kalyana Karnataka region by opening branches in underserved areas and to enhance operational efficiency by improving asset quality, adopting new technology, and strengthening customer service delivery, the statement said.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Power tariffs under BESCOM to rise from May 1
Bengaluru (PTI): Power bills for consumers under the Bangalore Electricity Supply Company Limited (BESCOM) will go up from May 1, following an order issued by the Karnataka Electricity Regulatory Commission (KERC) on Friday.
The hike comes after KERC allowed the BESCOM to recover a revenue deficit of Rs 2,068 crore incurred in 2024-25, from the consumers.
As a result, for every unit of electricity consumed in 2024-25, the customers will be charged an additional 56 paise, it said.
"BESCOM shall calculate, for each of the active consumers of FY2024-25 the amount to be recovered based on their actual energy consumption during FY2024-25. Such amount shall be recovered during FY 2026-27 in equal monthly instalments, to be called as 'FY25 True up Charges', commencing from the first meter reading date falling on or after 1 May 2026 and concluding with the reading date ending on 30 April 2027," the order said.
"It is further ordered that BESCOM shall maintain a separate head of account, allocated for the purpose, to record the adjustment of the said amount to ensure full recovery of the deficit," it added.
Similarly Chamundeshwari Electricity Supply Corporation Limited (CESC) has also recorded a revenue deficit of Rs 121.71 crore and can collect an additional 15 paisa per unit for consumption in 2024-25, official sources said.
