core sector communique

Recapitalization of Regional Rural Banks to improve their Capital to Risk Weighted Assets Ratio

The Union Cabinet today approved the release of 50% share of the Central Government for recapitalization of remaining Regional Rural Banks (RRB) to improve their Capital to Risk Weighted Assets Ratio (CRAR). As all State Governments have not contributed their share the Cabinet decided to extend the scheme of capitalization of weak RRBs by another 2 years. Background  The Regional Rural Banks were established in 1975 with the objective to create an alternative channel to 'cooperative credit structure' with a view to ensure sufficient institutional credit for rural and agriculture sector. The issued capital of RRBs is shared by Central Government, the concerned State Government and the sponsor bank in the proportion of 50%, 15% and 35%, respectively. In pursuance of the recommendations of Dr. Chakrabarty, Deputy Governor, RBI on CRAR of RRBs, Government had initiated the process of recapitalization of 40 financially weak RRBs in 2009-10. The recapitalization amount has to be shared by stake holders in proportion of their share holding. The release of Central Government share is subject to release of State Government and sponsor bank share. Capitalization has been completed in 16 RRBs till the end of March, 2012. Cabinet Decision “ 13” 07.06.2012 Press Information Bureau Government of India ____ Setting up of 'North East Centre for Technology Application and Reach’ under Department of Science & Technology The Union Cabinet today approved setting up of an Autonomous Organization named 'North East Centre for Technology Application and Reach' (NECTAR) at Shillong, Meghalaya as a Society under the Societies Registration Act 1860, under the Department of Science & Technology w.e.f 2012-13. The total expenditure involved will be Rs.292 crore during the 12lh Plan period. The Ministry of Science and Technology proposes to establish a nodal centre in the North Eastern Region in the form NECTAR as a society under the Societies Registration ACT 1860. NECTAR would promote deployment of carefully selected technologies, emanating from the public funded research institutions under Government of India and State Governments, in consultation with the respective state governments, after assessing their application potentials.