What is RRB and Some Important Facts

RRB (Regional Rural Bank)

Meaning: RRB 

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.

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