Cabinet allows Rs 632-cr capital infusion in RRBs

The Union Cabinet allowed capital infusion of Rs 632 crore in the Regional Rural Banks (RRBs), and decided to extend this scheme of capitalization for two more years for state governments to contribute their share.

According to an official statement, the Union Cabinet approved the release of 50 per cent share of the central government for recapitalization of the remaining RRBs to improve their Capital to Risk Weighted Assets Ratio(CRAR ). The issued capital of RRBs is shared by the Centre, the state government concerned and the sponsor bank in the proportion of 50 per cent, 15 per cent and 35 per cent, respectively.

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