Amendments to the RRB Act

The Cabinet on Tuesday approved amendments in the Regional Rural Banks (RRBs) Act, 1976,
which seeks to enhance authorised and issued capital of RRBs, strengthen their capital base and
bring flexibility in shareholding between central government, state government and the sponsor
bank, reports Our Bureau. In a statement, the government said the amendments will ensure
financial stability of RRBs, which will enable them to play a greater role in financial inclusion
and meeting credit requirements of rural areas. The Regional Rural Banks Bill 2013, which got
lapsed, had provisions to allow RRBs to raise capital from sources other than the central
government, state government and sponsor bank. Almost all RRBs are profitable and the profit
of RRBs functioning till March 2014 was `. 2,832.3 crore.

Dec 03 2014 : The Economic Times (Mumbai)

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Amendments-to-the-RRB-Act-03122014014032