The Group studied the recommendations made by various committees constituted in the past on the subject and made a comprehensive state-wise/ sponsor bank-wise review of the performance of the RRBs. The Group examined the Regional Rural Banks Act, 1976 for exploring the possibilities for restructuring of RRBs through merger/ consolidation, change of sponsor banks and offering sponsorship of RRBs to private sector banks. The Group has made recommendations relating to minimum capital requirements of the RRBs and suggested measures for better governance, suitable regulation and supervision of the RRBs.