In this section, we study about the regional rural bank i.e. RRB. Candidate must have downloaded these note in PDF format. RRBs are local bank which is run in the different states of the country. This is basically for the rural areas of the states. The operation of these banks is limited notified by the Government of India, covering more than one districts in the state. These banks perform the following functions are as follows:
- Provides banking facility to rural and semi-urban areas.
- Carrying outs government works like distributing the wages, pensions etc.
- Provides Para-banking facilities like locker facility, debit card, credit card.
In 1970s, there is a problem for the farmer how to get credit, debit and other banking facility. This point was taken by Narasimham Working Group in 1975.On the basis of this committee’s recommendations, a RRB Bill was passed in September 1975.In 1976, to gives the banking facilities and credit facilities to agriculture and other rural areas.
First bank came in existence on Gandhi jayanti in 1975 named as Prathama Grameen Bank. These banks have government backing from the Regional Rural Bank Act 1976.In this act, government of India granted to set up new banks in rural and semi-rural areas. RRB regulates by three parties with respective shares as
Government of India-50%
State Government -15%
Sponsor bank-35 %
There are following team for the decision making in these banks are :-
- Board of Directors
- Chairman & Managing Director
- General Manager
- Chief Manager/Regional Managers
- Senior Manager
- Officer / Assist
Numbers of RRB in India
|Months with years||No. of banks|
Regulations of RRBs
These banks regulated by the National Bank for Agriculture and Rural Development (NABARD). Currently seven states of India named as Tripura, Nagaland, Manipur, Mizoram, Arunachal Pradesh Meghalaya and Puducherry ,have state level RRBs.