Pranab asks eastern region govts to release 200 cr for RRBs

The Finance Ministry today asked state governments of the eastern region to release about 200 crore rupees as part of their share for recapitalisation of Regional Rural Banks, RRBs in the country. 

Addressing Chief Ministers and Bankers of the eastern region at a meeting in Kolkata, the Finance Minister Pranab Mukherjee said that 10 state governments of the eastern region are now required to release the fund in this regard at the earliest.

Highlighting the importance of Regional Rural Banks, he said that they are playing an increasingly important role in the growth of rural economy. Noting the fact that insurance penetration, particularly in the north eastern region, is low, Mr. Mukherjee instructed Life insurance Corporation and Non-life Insurance companies to ensure that all districts have at least one branch or a satellite office during the coming year. He said that the government is popularising insurance coverage of rural poor through various schemes as a part of Financial Inclusion.

Mr. Mukherjee also sought the cooperation of Chief Ministers for making e-payments mandatory for various transactions under government schemes.