The total number of Regional Rural Banks (RRBs) stands at 82 as at end-March 2010 following the process of their amalgamation initiated by the government in 2005, the RBI has said.
"In order to strengthen and consolidate RRBs, the Government in 2005 initiated the process of amalgamation of RRBs in a phased manner. Consequently, the total number of RRBs has reduced from 196 to 82 as on March 31, 2010," Reserve Bank of India (RBI) said in its annual report.
Twenty-one RRBs have already migrated fully to core banking solutions (CBS) and implementation of CBS is in progress in the remaining RRBs, the RBI said, citing status reports received from their sponsor banks.
The apex bank said recommendations of the committee, constituted under Deputy Governor K C Chakrabarty to examine the financials of the RRBs and suggest a road-map to bring their capital to risk-weighted risk assets ratio (CRAR) to 9 per cent by March 2012, are under examination.
The committee has recommended recapitalisation requirement of Rs 2,200 crore (Rs 22 billion) for 40 of the 82 RRBs.
The panel has also recommended, inter alia, increase in the authorised capital of RRBs, allowing RRBs with higher net worth to access the capital market, improving governance, management structure and efficiency of the rural lenders.
"The recommendations of the committee are under examination," the banking regulator said.
