Under the RRB Act 1976, 50% stake in regional rural banks (RRBs) would be with the central government, 15% with the state government concerned and the remaining with the sponsor bank. Photo: MintNew Delhi: The mergers of regional rural banks that are ordered by the government are now exempt from seeking CCI approval, according to a notification—a move that will lead to faster closure of such transactions. Regional Rural Banks (RRBs)—set up under the RRB Act, 1976—provide credit and other facilities to small farmers, agricultural labourers and artisans, among others, in the rural areas. “The banking sector in India is stressed and if the government wishes to amalgamate certain regional rural banks in the public interest, then regulatory approvals should be kept at the minimum. In 2015, the RRB Act was amended whereby such banks were permitted to raise capital from sources other than central, state governments and sponsor banks.

Source: Mint August 20, 2017 14:26 UTC