Extension of recapitalization of Regional Rural Banks scheme

Recently the Government has approved an extension of the scheme of recapitalization of RRBs for a further period of three years up to 2019-20.

The scheme for the recapitalization of Regional Rural Banks (RRBs) started in the financial year 2010-11 and was subsequently extended up to 31.03.2017.

Recently the Government has approved an extension of the scheme of recapitalization of RRBs for a further period of three years up to 2019-20. Under the scheme, recapitalization support is provided to RRBs to maintain minimum prescribed CRAR level of 9%.

A strong capital structure and minimum required level of CRAR will ensure the financial stability of RRBs which will enable them to play a greater role in financial inclusion and meeting the credit requirements of rural areas.

The recapitalization will enable RRBs to provide credit and other facilities especially to the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs in rural areas for development of agriculture and other productive activities.