Rural banks are, what I often refer to as, the “natural frontliners” in our national program to broaden and deepen the reach of responsible… and empowering… financial services to local communities. It is therefore incumbent upon the regulators to ensure that the strength and viability of this critical segment of our banking system is sustained, particularly during these challenging times that we face.
The SPRB is specifically expected to achieve this goal of creating a stronger rural banking system as it promotes mergers and consolidations between or among rural banks and eligible strategic third party investors (STPIs) under a specific set of guidelines. There are two prongs to the SPRB – one, the capital augmentation component, and two, the regulatory relief package.