Question : One-third of RRBs are in difficult condition in the country. Hence government provides rupees 670 crore support for RRBs. Which of the following states has the maximum number of Regional Rural Bank ?
(a) Maharashtra
(b) Gujarat
(c) Uttar Pradesh
(d) Rajasthan
Answer (c)
Related Facts
- Government has recently provided capital of Rs 670 crore to the Regional Rural Banks.
- This support was necessary to RRBs to meet regulatory capital.
- It is notable that one third of the RRBs in the country are in a difficult situation.
- Of the 43 Regional Rural Banks, about one-third especially from north-eastern and eastern regions are in losses and they needed fund to strengthen capital base.
The ratio of 50:15:35
- Above mentioned ratio denotes the current scheme for recapitalisation of RRBs.Details are as follows :-
| Provider | Capital support ratio(%) |
| Central Government | Fifty |
| Concerned State Governments | Fifteen |
| Sponsor Banks | Thirty five |
- This recapitalization scheme enable them to meet the regulatory requirement of capital to risk weighted assets ratio (CRAR) of 9 per cent.
Regional Rural Bank
- Products of these banks are — Retail banking, corporate banking, investment banking, mortgage loans, wealth management, debit cards, UPI, internet banking, mobile banking, finance and insurance.
These banks founded 45 years ago(October 2, 1975). - There are 43 RRBs in the country.
- Andhra Pradesh,West Bengal and Uttar Pradesh have maximum number of RRB.
By — Pankaj Pandey.