CURRENT AFFAIRS

Detailed explanation-1: -The government last provided capital support to banks in 2021-22. It had earmarked Rs 20, 000 crore for recapitalisation of PSBs through supplementary demands for grants.

Detailed explanation-2: -Bank recapitalization is a method to infuse new and fresh capital into banks to strengthen their balance sheet. To help with the credit flow, the government as well as private institutions use equity and debt instruments to recapitalize the banks. It is very important to ensure the credit growth of the economy.

Detailed explanation-3: -IAS Exam Latest Updates. Recapitalisation of Banks is injecting additional capital into state-owned banks to bring them up to capital adequacy standards. The government injects capital into banks that are short on cash using a variety of instruments.

Detailed explanation-4: -The Mission Indradhanush for PSBs aims at reorganizing the operation of the public sector banks to enable them to compete with the private sector banks. It seeks to revive the economic development through the reduction of political intervention in the working of PSBs and improving credit.