Cabinet decision: RRB recap scheme extended

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New Delhi | Published: July 5, 2018 5:22:42 AM

To help regional rural banks (RRBs) maintain minimum regulatory capital adequacy ratio of 9%, the Cabinet on Wednesday extended recapitalisation of RRBs up to FY20

rrb, banksRRBs are jointly owned by the Centre, the state government concerned and sponsor banks, with the issued capital shared in the proportion of 50%, 15% and 35%, respectively. (Reuters)

To help regional rural banks (RRBs) maintain minimum regulatory capital adequacy ratio of 9%, the Cabinet on Wednesday extended recapitalisation of RRBs up to FY20. The scheme of recapitalisation of RRBs started in FY11 and was extended up to March 31, 2017. Of its total share of Rs 1,450 crore, the Centre has released `1,107 crore in the period. The remaining amount of Rs 343 crore will be utilised to provide recapitalisation support to RRBs whose capital adequacy ratio is below 9%.

RRBs are jointly owned by the Centre, the state government concerned and sponsor banks, with the issued capital shared in the proportion of 50%, 15% and 35%, respectively.

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