FM asks east zone states to release Rs 198 cr for RRBs

The finance ministry today asked state governments of the eastern region to release about Rs 200 crore as part of their share for recapitalisation of Regional Rural Banks (RRBs).

“The 10 state governments of the eastern region are now required to release Rs 198.50 crore for recapitalisation of 18 RRBs. I would request them to release their share expeditiously,” Finance Minister Pranab Mukherjee said while addressing Chief Ministers and bankers of the eastern region.

RRBs are jointly owned by the Centre, the state government concerned and the sponsor banks.

Highlighting the importance of Regional Rural Banks, the Finance Minister said they are playing an increasingly important role in the growth of rural economy. “I am happy to note that out of the 82 RRBs functioning in the country, 80 RRBs have rolled out the CBS. These institutions will soon be a part of National Electronic Funds Transfer (NEFT). I am also happy to note that all the 22 RRBs in the east zone states are participating in the NEFT system.” All RRBs will now be in a position to provide facility to their customers to remit funds across the country.