Parliament passes Regional Rural Banks (Amendment) Bill, 2014 [ Current News (Concise) ]
Parliament has passed RRBs (Amendment) Bill, 2014 was first passed in Lok Sabha on 22 December 2014 and later in Rajya Sabha on 28 April 2015. This bill amends RRbs Act, 1976 and aims to strengthen the Regional Rural Banks (RRBs) and deepen their financial inclusion. According to the Act, It should be noted that the parent Act of 1976 mainly has provisions for the incorporation, regulation and winding up of RRBs.
- This amendment bill increases the authorised capital of each RRBs from Rs 5 crore to Rs 2000 crore divided into Rs 200 crore of fully paid share of Rs 10 each and as per the parent Act the Rs 5 crore share capital of RRBs is split into 5 lakh shares of Rs 100 each.
- The Bill allows RRBs shareholding to raise capital from sources other than the central and state governments, and sponsor banks.
- Board of director also mentions that directors will be elected by shareholders based on the total amount of equity share capital issued to such shareholders.
- The bill raises the tenure of directors to 3 years from existing 2 years. The Bill also states that no director can hold office for a total period exceeding six years.
- The parent Act had provision which mentioned that the balance books of RRBs should be closed and balanced by 31st December every year.
- Published/Last Modified on: April 30, 2015