<h1>Union Cabinet Approves 50% Funding for RRB Recapitalization, Extends Scheme Amid State Government Delays.</h1> The Union Cabinet approved the release of 50% of the Central Government's share for recapitalizing remaining Regional Rural Banks (RRBs) to enhance their Capital to Risk Weighted Assets Ratio (CRAR). Due to incomplete contributions from State Governments, the recapitalization scheme is extended for two more years. RRBs, established in 1975, aim to provide institutional credit for rural and agricultural sectors, with capital shared by the Central Government, State Government, and sponsor banks. Recapitalization began in 2009-10 for 40 financially weak RRBs, with 16 completed by March 2012. The Central Government's contribution depends on the State Government and sponsor bank's participation.