New Delhi, Aug 18 - The government will infuse fresh capital into the regional rural banking system to increase credit flow to the farm sector, Finance Minister Pranab Mukherjee said here Tuesday.

'The non-performing assets (NPA) levels of the regional rural banks (RRBs) are within acceptable limits. We intend to make rural banks profitable by 2010,' Mukherjee told reporters on the sidelines of a meeting with the heads of RRBs.

He said the government would set up a committee to look into the demands of the rural banks, including fresh capital infusion.

The minister, who took stock of the rural banks' performance and credit flow to the farm sector in the meeting, said the capital infusion would help RRBs achieve their agriculture targets in 2009-10.

'They (RRB heads) have assured me that they would meet the agriculture target this fiscal,' said Mukherjee.

Mukherjee, however, said there was no fresh proposal for farm loan waver.

He added that the economy would grow at over 6 percent in the current fiscal.