Recapitalization of RRBs in India

Q.  Which committee reviewed the financial position of all RRBs in 2010 and recommended for recapitalization?
- Published on 13 Feb 17

a. Chakrabarty Committee
b. Nayak Committee
c. Dr. Vyas Committee
d. Sriniwasan Committee

ANSWER: Chakrabarty Committee
The Government had constituted a Committee in September 2009 (Chairman : Dr. K. C. Chakrabarty) to study the current level of Capital-to-Risk-Weighted Assets Ratio (CRAR) of RRBs.

The Committee submitted its Report to the Government of India on April 30, 2010.

The Committee was also required to suggest the required capital structure for RRBs given their business level, so that their CRAR is sustainable and provides for future growth and compliance with regulatory requirements.

Capital Adequacy Ratio (CAR), also k/as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk.

It is a measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.

Post your comment / Share knowledge

Enter the code shown above:
(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)