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Our Bureau

New Delhi, Jan. 30 The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its nod for release of the Centre’s 50 per cent share for recapitalisation of Regional Rural Banks (RRBs) with negative networth.

Currently, there are 27 RRBs with negative networth and the total recapitalisation amount for these RRBs has been assessed at Rs 1,795.07 crore. The RRBs are owned by the Central Government, State Governments and the sponsor banks in the ratio of 50:15:35. The Centre’s 50 per cent share towards recapitalisation of the 27 RRBs would therefore amount to Rs 897.98 crore.

“The amount would be released to the RRBs along with the contribution by the State Governments and the respective sponsor bank,” the Finance Minister, Mr P. Chidambaram, told reporters after CCEA meeting here on Wednesday.

He said recapitalisation would improve the viability of RRBs with negative networth.

Till early this month, eight States had agreed to pay up their share of recapitalisation in cash. These States are Chhattisgarh, Arunachal Pradesh, Tripura, West Bengal, Bihar, Assam, Nagaland and Jharkhand.

More Stories on : Regional Rural Banks | Policy

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