Question

Write a note on Regional Rural Banks.

Answer 1

Regional rural banks came into existence in 1975. RRBs are recommended with a view to developing the rural economy by providing credit and other facilities to the small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs.

RRBs are set up by the joint efforts of the center and state governments and commercial banks. At present, there are 64 RRBs in India. RRBs confine their lending only to the weaker sections and their lending rates are at par with the prevailing rate of cooperative societies.