16 Jul 2015 16:17 IST

RRB recapitalisation scheme extended by 3 years

Decision will help RRBs improve their capital-to-risk weighted assets ratio

The Cabinet has extended by three years the validity of an earlier existing recapitalisation scheme for weak regional rural banks (RRBs).

The recapitalisation scheme - which was earlier valid up to March 31, 2014, has now been extended up to 2016-17, an official release said,

This decision would help RRBs improve their capital-to-risk weighted assets ratio (CAR).

The minimum CAR stipulated for RRBs stood at 9 per cent and several of these banks are unable to maintain this prescribed level.

The Centre would go in for supplementary demands for grants to provide further funds required for recapitalisation.