The scheme for recapitalisation of Regional Rural Banks (RRBs) started in financial year 2010-11 and was subsequently extended upto 31.03.2017. Recently the Government has approved extension of the scheme of recapitalisation of RRBs for further period of three years upto 2019-20. Under the scheme, recapitalization support is provided to RRBs to maintain minimum prescribed CRAR level of 9%.
A strong capital structure and minimum required level of CRAR will ensure financial stability of RRBs which will enable them to play a greater role in financial inclusion and meeting the credit requirements of rural areas.
Recapitalisation will enable RRBs to provide credit and other facilities especially to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in rural areas for development of agriculture and other productive activities.
Ministry of Finance