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.
