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RBI urges Bengal to recapitalise rural banks

By IANS,

Kolkata : The Reserve Bank of India (RBI) Wednesday urged the West Bengal government to provide Rs.83 crore recapitalisation of the state’s three regional rural banks (RRBs), which are in need of capital.

“There are three regional rural banks in West Bengal and all of them are in need of capital. I believe the state government has to release some Rs.83 crore and if they release that, they can get Rs.235 crore from the government of India. I have requested the chief minister for that,” RBI Governor D.Subbarao told reporters after meeting Chief Minister Mamata Banerjee at the state secretariat here.

The three RRBs are the Bangiya Gramin Vikash Bank, Paschim Banga Gramin Bank and Uttar Banga Khetriya Gramin Bank.

On financial inclusion in the state, Subbarao said only about 53 percent of the villages which have over 2,000 population has so far been covered under banking facilities.

There is a national target that by March 2012, all villages over 2,000 population in the country must have access to banking.

“Of the 7,500 villages in West Bengal, about 4,000 are covered. Which is just about 52-53 percent. Banks say that for them to open a regular branch, they need premises, road connectivity… they need wireless connectivity,” the governor said.

“The chief minister has promised to look into that,” he added.