Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 14:02 IST

Scheme for Capitalisation of Financially Weak Rrbs Extended by Another Two Years

The Union Finance Minister ShriPranab Mukherjee proposed to extend the scheme of capitalization of financially weak RRBs by another 2 years to enable all the States to contribute their share. Announcing this during his Budget speech, Shri Mukherjee informed that the process of capitalization of financially weak RRBs has been completed in respect of 12 RRBs by the end of February, 2012.

The Finance Minister Shri Mukherjee also informed that of the 82 RRBs in India, 81 have successfully migrated to Core Banking solutions (CBS) and have also joined the national Electronic Fund Transfer system.

***

DSM/RC/SKS/20

Scheme for capitalization of regional rural banks extended to enable state contributions; core banking migration and NEFT participation noted. Extension of the scheme of capitalisation for financially weak regional rural banks by two years to permit States to make outstanding contributions, noting that recapitalisation was completed for twelve RRBs by end-February 2012 and that the vast majority of RRBs have migrated to core banking solutions and joined the national electronic funds transfer system.