FM allots Rs 500cr to Regional Rural Banks

Pranab Mukherjee, the Union Finance Minister has said that the Regional Rural Banks will be strengthened to enable them to maintain a Capital to Risk Weighted Asset Ratio (CRAR) of at least 9% as on March 31, 2012.

The Government will provide Rs 500 crore to these banks during 2011-12, which received Rs 350 crore during the current year for this purpose.

The Government would provide a sum of Rs 6,000 crore during 2011-12 to enable public sector banks to maintain a minimum Tier I CRAR at 8%. The Government has already been providing a sum of Rs. 20,157 crore for infusion in the public sector banks to maintain Tier I CRAR at 8% and increase Government equity in some banks to 58%.

Considering Micro Finance Institutions (MFIs) as an important means of financial inclusion, the Finance Minister has proposed to create in the course of the year,