Question
The Regional Rural Bank (Amendment) Act 2015
prescribes that the combined share of the government and the sponsoring bank should be a minimum of: -Solution
The Regional Rural Banks (Amendment) Act, 2015, came into effect from 4th February 2016. The Act raises authorised capital to Rs 2,000 crore and states that it cannot be reduced below Rs 1 crore. The Act allows RRBs to raise capital from sources other than the existing shareholders -central and state governments, and sponsor banks. Here, the combined shareholding of the central government and the sponsor bank cannot be less than 51%.
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