Cabinet approved the continuation of recapitalization of RRB scheme

Date: 2020-03-26 15:04:28

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved to continue the process of recapitalization of Regional Rural Banks (RRBs).

The Cabinet approved to provide minimum regulatory capital to RRBs for another year, that is, up to 2020-21 for those RRBs which are unable to maintain minimum Capital to Risk-weighted Assets Ratio (CRAR) of 9% which was set as per the regulatory norms prescribed by the Reserve Bank of India (RBI). The CCEA also approved the RRB's to utilize Rs.670 crore as central government share for the scheme of Recapitalization of RRBs that are subject to the condition that the release of the Central Government’s share will be contingent upon the release of the proportionate share by the sponsor banks. Earlier, it was decided that 50% of the total recapitalization support of Rs.1340 crore will be shared by the government.