For the regional rural banks, which among the following is the correct share of Central, State and Sponsor Bank?
[A]50%, 40%, 10%
[B]50%, 35%, 15%
[C]50%, 15%, 35%
[D]40%, 50%, 10%
50%, 15%, 35%
In RRBs, 50% share shall be held by the central government, 15% by the concerned state government and 35% by the sponsor bank. The RRB amendment act 2014 has allowed the RRBs to raise their capital from sources other than the central and state governments, and sponsor banks. In such a case, the combined shareholding of the central government and the sponsor bank cannot be less than 51%. Further, if the shareholding of the state government in the RRB is reduced below 15%, the central government would need to consult the concerned state government.