(a) whether the Regional Rural Banks are in a bad state due to negligence in recovery
of loans and financial irregularities;
(b) if so, whether the Government have consti tuted any Commission to examine this;
(c) if so, the details thereof and if not, the reasons therefor;
(D) whether the Government are considering to recapitalise the Regional Rural Banks; and
(e) if so, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATH) :
(a) The Regional Rurai Banks (RRBs) have been showing steady progress in their recovery
performance since 1994 particularly after the commencement of restructuring programme for
RRBs on `Stand alone` basis. The recovery level of RRBs which stood at 46.23% during 1993-94
progressively increased to 60.54% during 1997-98.
(b) No, Sir.
(c) In view of the steady progress in the recovery performance of RRBs, appointment
of such a Commission has not been considered necessary.
(d) and (e) The process of recapitalisation of RRBs was initiated during the year
1994-95 and during the period 1994-2000, additional equity support of Rs. 2T88.42 crores
has been provided to 187 RRBs.