Plan to List Five RRBs by FY27: Eligibility and Impact
Why in the news
The Centre wants a minimum of five RRBs listed by FY27, to improve credibility, accountability and capital access.
Key facts
- Policy: One State, One RRB, to raise efficiency and reduce inter-bank competition.
- 28 RRBs with over 22,000 branches in 700 districts.
- Listing should improve governance and let RRBs raise funds publicly.
IPO eligibility (2022 draft)
| Parameter | Requirement |
|---|---|
| Net worth | Rs 300 crore, past three years |
| Capital adequacy | Above 9% for three years |
| Operating profit before tax | Rs 15 crore in 3 of 5 years |
| RoE / RoA | 10% / 0.5% in 3 of 5 years |
| Status | Not under RBI’s PCA |
About RRBs
- Set up under the RRB Act, 1976; capital: Centre 50%, states 15%, sponsor banks 35%.
Exam angle
- RRB count now: 28; listing target: five by FY27.