RRB (Regional Rural Bank)
RRBs are oriented towards meeting the needs of the weaker sections of the rural population consisting of small & marginal farmers, agricultural laborers, artisans & small entrepreneurs.
REAL ALSO: SOME IMPORTANT FACTS RELATED TO BANK
RRB: Some Important Facts
- Regional rural bank was established on 2nd Oct 1975 under the provisions of RRB act 1976 with a view to develop the rural economy.
- It was established to take banking services to the doorstep of rural masses, especially in remote rural areas with no access to banking services.
- It also provides institutional credit to weaker sections of society at a concessional rate.
- On 2nd Oct 1975, 5 RRB was established at 1) Moradabad (U.P) 2) Gorakhpur (U.P) 3) Bhiwani (Haryana) 4) Jaipur (Rajasthan) 5) Malda (West Bengal).
- With effect from 1997, priority sector lending was made applicable to RRBs.
- The union cabinet on 31st Jan 2013 gave its approval to the proposed amendments in the RRBs Act 1976 to enhance authorized and issue capital to strengthen its capital base.
- RBI on 13th June 2006 announced its liberalized licensing policy for RRBs.
- RRBs is known as a Small man bank.
- Total 82 RRBs, in which 46 are amalgamated and 36 are standalone.
- New 82nd RRBs was Puduval Bharathiar Grama Bank Pondicherry 26 Mar 2008.
- All RRBs adopt the core of the banking system (CBS) by Sep 2011.
- Khushro committee- agriculture credit review committee. Khushro said that RRBs to merge with a sponsor bank.
- MC Bhandari committee to restructuring of RRBs.
- Prof VS Vyas’s recommendation advising the committee on the flow of credit to agriculture & a related act to restrict RRB in order to improve their operational viability & to take advantage of economies of scale were accepted.
RELATED CONTENT: UNIT TRUST OF INDIA: MEANING, FUNCTIONS