<h1>Union Cabinet Approves Amendments to Regional Rural Banks Act, 1976, Boosting Capital and Flexibility in Shareholding.</h1> The Union Cabinet approved amendments to the Regional Rural Banks Act, 1976, to enhance the authorized and issued capital of Regional Rural Banks (RRBs), aiming to strengthen their capital base. The changes also introduce flexibility in shareholding among the Central Government, State Government, and Sponsor Bank. The term for non-official directors appointed by the Central Government will be capped at three years. These amendments aim to ensure financial stability, enabling RRBs to play a larger role in financial inclusion and meeting rural credit needs. RRBs are jointly owned by the Government of India, State Governments, and Sponsor Banks.