Regular Rural Banks
Regional Rural Banks (RRBs) are financial institutions that provide banking services to rural and semi-urban areas in India. RRBs were established in 1975 with the aim of promoting rural development and providing credit facilities to rural areas. Here are some of the features of RRBs:
Ownership:
RRBs are jointly owned by the central government, state government, and the sponsor banks. The central government owns 50% of the share capital, the state government owns 15%, and the sponsor banks own 35%.
Area of operation:
RRBs operate in rural and semi-urban areas in India. They are established with the aim of providing banking services to people in these areas who may not have access to formal banking facilities.
Products and services:
RRBs offer a range of banking products and services, including savings and current accounts, fixed deposits, loans, and remittance services. They also offer specialized services, such as crop loans and Kisan credit cards, to farmers and rural entrepreneurs.
Credit facilities:
RRBs provide credit facilities to farmers, rural entrepreneurs, and small businesses. They offer loans for agricultural purposes, such as crop production, irrigation, and animal husbandry, as well as for non-agricultural purposes, such as housing, education, and small businesses.
Financial inclusion:
RRBs play a crucial role in promoting financial inclusion in rural areas. They provide banking services to people who may not have access to formal banking facilities, such as farmers, rural entrepreneurs, and women.
Sponsor banks:
RRBs are sponsored by commercial banks, which provide them with financial assistance and technical support. The sponsor banks also help RRBs in mobilizing deposits and extending credit facilities.
Government support:
RRBs receive financial support from the central and state governments in the form of capital infusion and subsidies. This support helps RRBs in expanding their operations and providing banking services to more people in rural areas.
In conclusion, RRBs are financial institutions that provide banking services to rural and semi-urban areas in India. They are jointly owned by the central and state governments and sponsor banks, and are established with the aim of promoting rural development and providing credit facilities to people in rural areas. RRBs offer a range of banking products and services, provide credit facilities to farmers and rural entrepreneurs, promote financial inclusion, and receive government support in the form of capital infusion and subsidies.
