Prudential accounting norms of income recognition, asset classification, provisioning and exposure, were implemented during this period to provide durability to the reform process. In April, 2000, RRBs were allowed to apply for permission to maintain non-resident accounts in rupees. Second Phase: 2004–2010 9.
The next Phase of reforms started in 2004–05 with the structural consolidation of RRBs by amalgamation of RRBs of the same sponsor bank within a State. Capital support aggregating Rs. 1796 crore was provided during the period 2007–08 to 2009–10 as part of this process.