New Delhi, Jan 30 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for recapitalisation of 27 Regional Rural Banks (RRBs) having a negative networth with the total package being assessed at Rs 1,795.97 crore.
Briefing newspersons on the CCEA meeting, Finance Minister P Chidambaram said the Centre will bear 50 per cent of the cost of recapitalisation, which works out to Rs 897.98 crore.
Mr Chidambaram said the amount will be released to the RRBs along with the contribution by the State government and the respective sponsor bank.
The Finance Minister said recapitalisation would improve the viability of RRBs having negative networth.
The share of State government is 15 per cent and that of the sponsor bank 35 per cent.
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