Amendments to Regional Rural Banks Act, 1976





Amendments to Regional Rural Banks Act, 1976
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the amendments in the Regional Rural Banks (RRBs) Act, 1976 to enhance authorized and issued capital to strengthen their capital base and to bring flexibility in the shareholding between Central Government, State Government and Sponsor Bank. The term of the non-official directors appointed by the Central Government will be fixed not exceeding three years.

The amendments will ensure financial stability of RRBs which will enable them to play a greater role in financial inclusion and meeting credit requirements of rural areas and the Board of RRBs will be strengthened.
Background:
Regional Rural Banks were established under Regional Rural Banks Act, 1976 (the RRB Act) to create an alternative channel to the cooperative credit structure and to ensure sufficient institutional credit for the rural and agriculture sector. RRBs are jointly owned by Government of India, the concerned State Government and Sponsor Banks with the issued capital shared in the proportion of 50 percent, 15 percent and 35 percent respectively. As per provisions of the Regional Rural Banks Act, 1976 the authorized capital of each RRB is Rs. five crore and the issued capital is maximum Rs one crore.
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Government Fully Seized of the Situation Arising out of the Notice Given by the United Forum Of Bank Unions (UFBU) for Zone-Wise Relay Strikes from 2nd to 5th December, 2014;
Advises all Public Sector Banks (PSBS) to take  Pre-Emptive Steps to Ensure Least Inconvenience to General Public and  to Adequately Load ATMS, To Ensure Operation of Clearing Houses, to Ensure Continuation of Internet Banking as well as to Make Arrangements for Carrying-out Uninterrupted Government Business Transactions etc.
The Central Government is fully seized of the situation arising out of the notice given by the United Forum of Bank Unions (UFBU) for Zone-wise relay strikes from 2nd December, 2014 to 5th December, 2014. The Government is keeping a close watch over the situation and monitoring it on regular basis.
               All Public Sector Banks (PSBs) have been advised by the Government to take  pre-emptive steps to ensure least inconvenience to general public and  to adequately load ATMs, to ensure operation of clearing houses, to ensure continuation of internet banking, to make arrangements for carrying out uninterrupted government business transactions, etc.
Earlier, the United Forum of Bank Unions (UFBU) had given a notice for Zone-wise relay strikes for early wage revision of bank employees.
The wages of employees of Public Sector Banks (PSBs) are negotiated between management of PSBs represented by Indian Banks’ Association (IBA) and Unions/Associations. The Negotiating Committee of IBA has convened, so far, fourteen (14) rounds of meetings with the Unions/Associations. IBA is flexible and is ready to negotiate further with the Unions/Associations in a cordial manner. Unions/Associations have been appealed not to go on strike and to return to negotiations. IBA is also proactively striving to ensure timely completion of negotiation process.
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Government Looks Forward to the RBI Supporting the Revival of Growth and Employment: Finance Ministry
The Ministry of Finance states that it is encouraging that the Reserve Bank of India (RBI) has taken note of the structural change in the outlook for inflation. Responding to the Monetary Policy Statement issued by the RBI today, the Ministry states that the Government looks forward to the RBI supporting the revival of growth and employment. In the weeks ahead, the Government and RBI will work towards a monetary policy framework that will help institutionalize the gains achieved on the inflation front, so as to reduce inflationary expectations and further support the revival of investment and growth, the Ministry added.

Amendments to Regional Rural Banks Act, 1976 Amendments to Regional Rural Banks Act, 1976 Reviewed by Ajit Kumar on 10:27 AM Rating: 5

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