The Lok Sabha today passed the Regional Rural Banks (Amendment) Bill, 2014 by voice vote. The bill seeks to amend the existing Act so as to increase the authorised capital of each Regional Rural Bank from Rs 5 crore to Rs 2000 crore divided into Rs 200 crore of fully paid share of Rs 10 each.

The Bill also provides that the authorised capital of any Regional Rural Banks shall not be reduced below Rs 1 crore and shares in all cases to be fully paid up shares of Rs 10 each. It also provides that the issued capital of each rural bank shall not be less than Rs 1 crore .

Replying to a debate on the Bill, Minister of State for Finance Minister Jayant Sinha said in the House that government wants to strengthen the Regional Rural Banks and deepen their financial inclusion. Responding to the concerns of the members, the Minister said that public nature of the these banks will not be compromised. He said, these banks have performed well in the last five years.