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Centre's fund infusion into RRBs to hinge on viability plan execution

Financially-strong RRBs have been sent reminders to explore listing of their shares on the exchanges to raise capital

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Any further recapitalisation will be linked to the performance of RRBs based on the monitorable parameters

3 min read Last Updated : Sep 19 2022 | 6:15 AM IST

Regional rural banks (RRBs) have been told to prepare a viability plan based on broad parameters such as credit expansion, business diversification, NPA reduction and improvement in corporate governance, among others. Based on this, the Centre will infuse Rs 1,361 crore in such lenders this year.

Financially-strong RRBs have been sent reminders to explore listing of their shares on the exchanges to raise capital.

In FY22 and FY23, the Centre had decided to infuse capital to the tune of Rs 10,890 crore into RRBs. This is more than the total capital infusion of Rs 8,393 crore by all stakeholders from

Topics : Regional Rural Banks capital infusion

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