Government to infuse Rs 900cr in RRBs

Government announced that it would strengthen 27 Regional Rural Banks (RRBs) spread across 15 states by infusing fresh capital amounting to about Rs 900 crore.

"The total amount of re-capitalisation for the 27 RRBs having negative networth has been assessed at Rs 1,795.97 crore. In view of the 50% stake of the Centre, its contribution will be Rs 897.98 crore towards their re-capitalisation," Finance Minister P Chidambaram said after the meeting of Cabinet Committee on Economic Affairs (CCEA).

The re-capitalisation funds would be released to the RRBs along with the contributions of respective state governments and sponsor banks, he said.

"Re-capitalisation would improve the viability of the RRBs having negative networth," Chidambaram added.