Clears amendments to strengthen regional rural banks

The government on Tuesday approved amendments to a law to strengthen capital base and financial stability of Regional Rural Banks (RRBs). The amendments to the RRBs Act, 1976 were cleared by the Cabinet chaired by PM Narendra Modi. The amendments are aimed to enhance authorised and issued capital to strengthen their capital base and to bring flexibility in the shareholding between Central Government, State Government and sponsor bank, said an official statement.