Now the 'eyesight' of Modi government on regional rural banks!
Monday - September 24, 2018 12:46 pm ,
Category : WTN SPECIAL
The 'intention' of 36 regional rural banks to replace 56 after merger
Government plans to merge regional rural banks after public sector banks
SEP 24 (WTN) - Recently a few days ago, the Modi government had announced that the merger of three public sector banks, Bank of Baroda, Vijaya Bank and Dena Bank would soon be held. The Government intends that by merging public sector banks, there should be four to five public sector big banks in the country, thereby there would be reducing in the operational cost of the banks and reinforcing the growing NPA day by day.
According to the information received from the media, now the government is going to start the process of merger of regional rural banks (RRB) along with public sector banks. For your information let you know that now the number of regional rural banks is 56 in the country, the government intends to reduce their number from 56 to 36.
According to the information received from the media, as per the to a senior finance ministry official, the central government has started discussions with the states in this regard as they are also sponsors of regional rural banks in the country. It is being said that the sponsor bank is outlining the merger between the RRBs located within a single state.
It is being said that the merger of regional rural banks will increase the efficiency and productivity of RRB as well as the financial condition of these banks will also improve. If banks are merged, financial inclusion will be done best, which will increase the flow of debt in rural areas.
For your information let you know that the formation of regional rural banks was done under the RRB Act 1976. The purpose behind the formation of these banks was to provide loans and other facilities to small farmers, agricultural laborers and artisans in rural areas. Gradually this bank in India was very beneficial in the rural areas and many farmers, workers and craftsmen benefited from it.
In 2015, the law of regional rural banks was amended, and these banks were allowed to raise capital from other sources other than central, state governments and sponsored banks. For your information let you know that at present, the central government's share in regional rural banks is 50 percent, while the 35 percent stake is related to the sponsored bank and there is 15 percent of the state government's share.
The way the Modi government plans to merge public sector banks, similar plans have been set up for the regional rural banks. But this is not so easy because there is no stake of states in the public sector banks, so the merger is easy. But since the concerned state government also holds stake in regional rural banks, it is natural to oppose the states where there is no BJP government.
SEP 24 (WTN) - Recently a few days ago, the Modi government had announced that the merger of three public sector banks, Bank of Baroda, Vijaya Bank and Dena Bank would soon be held. The Government intends that by merging public sector banks, there should be four to five public sector big banks in the country, thereby there would be reducing in the operational cost of the banks and reinforcing the growing NPA day by day.
According to the information received from the media, now the government is going to start the process of merger of regional rural banks (RRB) along with public sector banks. For your information let you know that now the number of regional rural banks is 56 in the country, the government intends to reduce their number from 56 to 36.
According to the information received from the media, as per the to a senior finance ministry official, the central government has started discussions with the states in this regard as they are also sponsors of regional rural banks in the country. It is being said that the sponsor bank is outlining the merger between the RRBs located within a single state.
It is being said that the merger of regional rural banks will increase the efficiency and productivity of RRB as well as the financial condition of these banks will also improve. If banks are merged, financial inclusion will be done best, which will increase the flow of debt in rural areas.
For your information let you know that the formation of regional rural banks was done under the RRB Act 1976. The purpose behind the formation of these banks was to provide loans and other facilities to small farmers, agricultural laborers and artisans in rural areas. Gradually this bank in India was very beneficial in the rural areas and many farmers, workers and craftsmen benefited from it.
In 2015, the law of regional rural banks was amended, and these banks were allowed to raise capital from other sources other than central, state governments and sponsored banks. For your information let you know that at present, the central government's share in regional rural banks is 50 percent, while the 35 percent stake is related to the sponsored bank and there is 15 percent of the state government's share.
The way the Modi government plans to merge public sector banks, similar plans have been set up for the regional rural banks. But this is not so easy because there is no stake of states in the public sector banks, so the merger is easy. But since the concerned state government also holds stake in regional rural banks, it is natural to oppose the states where there is no BJP government.
