Monday, December 22, 2014

Govt. & #PSU banks to bring down stake in #RRBs to 51%

The proposed amendments to bring down the stake of union Govt. & PSU banks in the Regional Rural Banks (RRBs) to 51% was passed in the parliament today.Regional Rural Banks (RRBs) were established under Regional Rural Banks Act, 1976 (the RRB Act) to create an alternative channel to the 'cooperative credit structure and to ensure sufficient institutional credit for the rural and agriculture sector. RRBs are jointly owned by the Government of India, the concerned State government and sponsor banks, with the issued capital shared in the proportion of 50 percent, 15 percent and 35 percent, respectively. As per provisions of the Regional Rural Banks Act, 1976 the authorized capital of each RRB is Rs. 5 crore and the issued capital is a maximum Rs. 1 crore.