25 RRBs merged into 10

Restructuring of RRBs by merging geographically contiguous RRBs sponsored by different banks within a state is in progress in order to consolidate RRBs segment. During the first 9 months of the current fiscal 25 such banks have been merged into 10. Now the number of RRBs stands at 67 till the first week of Jan 2013. RRBs have a network of about 16,000 branches spread across the rural and semi-urban centres of the country.

What is the aim of consolidation?

  • The consolidation of RRBs has been progressing since 2005 following the recommendation of a committee chaired by RBI Deputy Governor K C Chakrabarty which decided to recapitalize 40 selected RRBs in 21 states.
  • These mergers will boost the capital base of RRBs and improving efficiencies as well as optimizing the use of modern technology.

Where did these mergers take place?

  • States where the mergers took place are Bihar, Karnataka, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and Uttarakhand.

The Centre’s shareholding in RRBs is 50%, while 35% and 15% are with the sponsor banks and state governments, respectively.

MGNREGA post office accounts ready for cash transfers scheme

Now the 3.5 crore post office accounts of the workers under MGNREGA will be used to make Aadhar-linked direct transfer of benefits such as pensions, scholarships and social welfare payments. Earlier, the post office accounts could not be used to make any deposit other than NREGA wage.

Under the new cash or direct benefit transfer initiative, the Aadhaar number will be used to authenticate the identities of beneficiaries, who will then receive their government benefits directly into their accounts. This requires all beneficiaries to open bank or post office accounts, which will then have to be seeded with their Aadhaar numbers.