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Tag: nirmala sitaram

  • Sustainability push: Govt asks RRBs to step up digitisation, lending to MSMEs

    As a part of reforms to make Regional Rural Banks (RRBs) financially sustainable, the federal government has requested them to maneuver in the direction of digitisation, together with providing web banking companies to its prospects, and develop their credit score base additional by elevated lending to the Micro, Small and Medium Enterprises (MSME) sector.

    “The cost of operations of RRBs were much lower as compared to scheduled commercial banks but that has increased now and the government wants them to work towards increasing their earnings,” mentioned an official supply within the know including that these are a part of the federal government’s plan to reform RRBs.

    This was mentioned in a gathering that was convened by Finance Minister Nirmala Sitharaman in July and attended by heads of sponsor banks and RRBs.

    One of the important thing causes for RRBs incurring losses is the truth that many of those branches should not have sufficient enterprise as they focus primarily on providing authorities’s schemes like direct profit switch within the rural areas of the nation.

    The supply added that the majority these rural banks are below Core Banking Solutions (CBS) which means their branches are linked with one another. “Offering internet services to customers is the next step for these banks,” he mentioned.

    According to a authorities launch submit the assembly final month, the Finance Minister urged the sponsor banks “to formulate a clear roadmap in a time-bound manner to further strengthen the RRBs and support the post-pandemic economic recovery and also suggested to conduct a workshop of RRBs and share the best practices with each other”.

    This wouldn’t be the primary time that the federal government is working to reform RRBs. After a set of reforms within the ’90s, the federal government had, in 2005-06, initiated a consolidation programme that resulted within the variety of RRBs declining from 196 in 2005 to 43 in FY21. The goal was to enhance their operational viability and to reap the benefits of economies of scale.

    After two consecutive years of losses in the course of the Covid interval, RRBs reported a consolidated web revenue of Rs 1,682 crore in FY21, and 30 of the 43 RRBs reported web income.

    The supply, quoted above, added that the plan additionally included merging branches of those RRBs with sponsor banks as soon as these branches attain a sure degree of enterprise.

    “The plan includes merging them with sponsor banks and that may happen once the sponsor bank sees advantage. Listing these RRBs on the bourses is a long-term plan that may or may not happen,” the supply additional mentioned.

  • Sports price range takes lower of Rs 230.78 crore, Khelo India sees largest discount

    The impression of the COVID-19 pandemic was felt on the nationwide sports activities price range because the central authorities on Monday allotted Rs 2596.14 crore for the monetary 12 months 2021-22 — a discount of Rs 230.78 crore when in comparison with the quantity earmarked initially for the earlier 12 months.
    In the final monetary 12 months, the federal government had allotted Rs 2826.92 crore for sports activities, which was later revised to Rs 1800.15 crore due to the shortage of exercise brought on by the pandemic.
    This 12 months’s allotted quantity is Rs 795.99 crore greater than the revised price range of 2020-21.
    However, the spending final 12 months was severely impacted after Tokyo Olympics was postponed, home occasions had been cancelled in virtually all sports activities and no overseas coaching and competitors was doable for a lot of the Indian athletes.
    The sports activities ministry bears the price of all overseas coaching and competitors, together with participation within the Olympics.
    “Initially, sports was allocated Rs 2826.92 in last year’s budget which was later revised to Rs 1800.15 after all sporting events across the world came to a halt because of the COVID-19 pandemic,” a sports activities ministry official instructed PTI, hinting why comparability shouldn’t be made with the revised price range of final 12 months.
    “There was hardly any exercise final 12 months as a lot of the nationwide camps had been closed due to the lockdown.
    “In terms of infrastructure development and upgradation of stadiums too, there was hardly any progress because of the pandemic,” the official added, with out divulging additional particulars.
    The authorities’s flagship Khelo India programme was handed the most important discount — of Rs 232.71 crore — amongst all sports activities heads for the 2021-22 price range, offered by Finance Minister Nirmala Sitharaman on Monday.
    The monetary allocation in direction of Khelo India programme, which bought Rs 890.42 crore within the final price range, was decreased to Rs 657.71 core.
    The Sports Authority of India, whose allocation was decreased to Rs 500 crore within the final price range, bought a considerable hike this time with the federal government proposing a rise of Rs 160.41 crore taking the entire to Rs 660.41 crore.
    The SAI is the nodal organisation to handle nationals camps, present infrastructure, tools and different logistics to the nation’s sportspersons.
    The allocation in direction of National Sports Federations (NSFs), which acquired a chilly shoulder within the final price range, was additionally hiked by Rs 35 crore to Rs 280 crore.
    As far as incentives for sportspersons are involved, the price range has proposed to additional slash the quantity from Rs 70 crore to Rs 53 crore.
    The price range for National Sports Development Fund has additionally been halved to Rs 25 crore.
    The allocation for the 2010 Commonwealth Games-SAI stadia renovation was additionally slashed to Rs 30 crore from Rs 75 final 12 months.
    National Welfare Fund for Sportspersons will proceed to get the identical quantity of Rs 2 crore as earlier, whereas, at Rs 50 crore, there was additionally no change within the allocation for the enhancement of sports activities amenities in Jammu and Kashmir.
    The Laxmi Bai National Institute of Physical Education will proceed to get Rs 55 crore, whereas contribution to the World Anti-Doping Agency (WADA) has been elevated to Rs 2.5 crore from Rs 2 crore.