Nabard’s Digital Initiative: Revolutionizing Rural Banking by September 30

Integrating IT Systems for Regional Rural Banks

On Monday, Nabard Chairman Shaji KV shared exciting news. The IT integration of recently merged Regional Rural Banks (RRBs) under the ‘One State One RRB’ plan will be complete by September 30.

Improving Rural Banking Services

At a CII event, Shaji explained the benefits of the RRB merger, which started on May 1. This merger aims to increase efficiency and cut costs in rural banking. Currently, 28 RRBs operate in 26 states and 2 Union Territories. They have over 22,000 branches across 700 districts.

“The state-level integration of RRBs is complete as of May 1. We expect to finish IT integration by September,” Shaji said.

Developing Digital Infrastructure

Nabard is building a shared digital infrastructure for RRBs. This includes launching credit platforms and government data systems to reach more rural areas. However, challenges like low internet bandwidth and limited awareness remain. Nabard is working with various partners to tackle these issues.

Digitizing Agricultural Value Chains

Shaji highlighted Nabard’s work to digitize agricultural value chains. About 20 of these chains are already up and running. The goal is to bring more farmers, especially those without formal land records, into the formal banking system.

Expanding Reach and Transparency

To boost reach and transparency, Nabard is implementing several initiatives:

• Using blockchain for crop traceability systems
• Strengthening Business Correspondent (BC) networks in rural areas
• Building additional technology stacks like the Agri Stack, Fisheries Stack, and Cooperative Stack

The ‘Cooperative Stack’ aims to integrate various rural schemes through Primary Agricultural Credit Societies (PACS). This will create a unified system for benefit delivery.

Leading the Cooperative Digitization Effort

Nabard is at the forefront of the cooperative digitization effort. Around 70,000 societies have already gone digital. Nabard is also supporting pilot projects with NGOs and FinTechs through the Financial Inclusion Fund.

Bridging the Rural-Urban Divide

Shaji noted that two-thirds of India’s population contributes only one-third of the national income. Nabard is working on solutions to narrow this gap. The institution aims to transform farmers into agribusiness entrepreneurs.

Additionally, Nabard is setting up a sandbox environment. This will allow fintechs to access anonymized data for developing rural-focused solutions.