Reserve Bank of India has estimated that by the upcoming fiscal, near about 40 regional rural banks (RRBs) will require capital infusion of Rs 2,200 crore. The estimation was provided by a committee set by RBI in this regard.

The committee led by RBI deputy governor, K C Chakraborty suggested that 40 out of 82 RRBs will be in need for Rs 2,200 crore recapitalisation by 2011-12. The amount should be given to them in two instalments of Rs 1,338 crore in 2010-11 and Rs 863 crore in 2011-12, the committee suggested.

The capital requirement has been estimated such that these RRBs are able to maintain capital adequacy ratio of atleast 7% by upcoming fiscal.

An additional amount of Rs 700 crore has been suggested for RRBs in eastern and north eastern region.

The committee also recommended that high net worth RRBs should be allowed to access capital from the market.