BANKING AFFAIRS

Detailed explanation-1: -Authorised capital: The Act specifies the authorised capital of an RRB to be Rs 5 crore, with a provision to change the same subject to a threshold of Rs 25 lakh. The Bill increases the specified amount to Rs 500 crore and changes the threshold amount to Rs 1 crore.

Detailed explanation-2: -It was sponsored by Syndicate Bank and had an authorised capital of Rs. 5 crore.

Detailed explanation-3: -Under the new norms, sponsor banks have been asked to identify the RRBs that are eligible for listing.

Detailed explanation-4: -The Regional Rural Banks (Amendment) Act, 2015 allows the RRBs to raise the capital from sources other than existing shareholders, but mandates the combined shareholding of the central government and the sponsor bank to be not less than 51%.

Detailed explanation-5: -[12th May, 2015.] An Act further to amend the Regional Rural Banks Act, 1976. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:-1. (1) This Act may be called the Regional Rural Banks (Amendment) Act, 2015.