DK Mittal, Secretary, Department of Financial Services (DFS) informed that the finance ministry has sought the formal approval of the cabinet for infusing a total of Rs 12,000 crore capital into various public sector banks (PSBs).
The department has already firmed up the list of 12 banks that would get capital support. The funds are likely to be disbursed in January itself soon after Cabinet approval.
The finance ministry is seeking formal approval from the cabinet because each of the capital infusion in various banks will exceed the specified investment level of Rs 300 crore.
The department, meanwhile, feels that cabinet approval should not be necessary if bank capital infusion funds are being provided through the union budget.
Therefore, it has also sought approval for not coming back to the cabinet up to 2018 for all the capital infusions to be made into PSBs for Basel III rules purposes.
The centre had in Budget 2012-13 provided Rs 15,888 crore towards capitalisation of public sector and regional rural banks and Nabard. Of this amount, the DFS is looking to get approval for Rs 12,000 crore.
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