Recapitalization extension to Regional Rural Banks upto 2019-20

Why in the news ?
  • The Union Cabinet has approved the extension of the scheme of recapitalization of Regional Rural Banks (RRBs) for the next three years i.e. upto 2019-20.  
  • This will enable the RRBs to maintain the minimum prescribed Capital to Risk Weighted Assets Ratio (CRAR) of 9 per cent.
More on news
  • There are 56 RRBs functioning in the country. As on 31st March, 2017(Prov.), the total credit given by RRBs is Rs.2,28,599 crore, of which the credit under key categories is as under: -

 

Particulars

 

Credit Amount (Rs. crores)

 

%age to total credit

 

Total       Priority       Sector Lending (PSL)

2,05,122

 

89.73%

 

RRBs

  • RRBs were set up with the objective to provide credit and other facilities, especially to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in rural areas for development of agriculture, trade, commerce, industry and other productive activities.
  • RRBs are jointly owned by Government of India, the concerned State Government and Sponsor Banks with the issued capital shared in the proportion of 50%, 15% and 35% respectively.
Source
The Hindu



Posted by Jawwad Kazi on 5th Jul 2018
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