Regional rural bank

The Regional Rural Banks were set up to meet the credit needs of small farmers, artisans, and rural entrepreneurs. However, over some time it has been observed that these banks are not able to meet the desired objectives mainly because of certain problems which have been discussed in this article. Some improvement strategies have also been suggested that would help these banks to tide over their current problems and function more effectively for the benefit of the rural economy. What are Regional Rural Banks: Regional Rural Banks (RRBs) are Indian public sector banks operating in the different states of India. They have been created to serve the rural areas of the country by providing them with credit and other financial services. Brief History: The history of Regional Rural Banks dates back to 1975 when the first RRB, called Prathama Bank, was set up in Moradabad, Uttar Pradesh. The idea of setting up RRBs was first mooted by the Morarji Desai government, and it was implemented by the then Prime Minister, Indira Gandhi. Objectives: The main objective of establishing RRBs was to provide credit and banking facilities to the rural poor, who were hitherto not served by the commercial banks. Functions: The functions of Regional Rural Banks are similar to that of any other commercial bank. They accept deposits, provide loans and advances, and undertake government and other banking business. Ownership: RRBs are jointly owned by the Central Government (50%), State Government(15%)...

The Regional Rural Banks Act of 1976 established Regional Rural Banks (RRBs) as government-sponsored, regionally based rural lending organisations. RRBs were designed as hybrid micro banking organizations, combining cooperatives' local orientation and small-scale lending culture with commercial banks' business culture. Their purpose was to provide the credit requirements for rural areas' underserved populations, such as small and marginal farmers, agricultural laborers, and socioeconomically disadvantaged people. The shareholding arrangement of RRBs among the three sponsoring bodies is 50:35:15 between the federal government, the sponsoring bank, and the state government. As part of the RRB consolidation program, the number of RRBs is now decreasing. Functions : A bank's basic functions may be stated as follows: • Customers' funds will be protected. • To create credit and enhance the quantity of money • to boost public trust in the banking system • mobilisation of public savings • to expand its network so that it may reach every element of society • To provide financial services to all consumers, irrespective of their income level. • To promote social fairness by offering financial services to all socioeconomic groups. What are the Issues to RRBs? • Rising Cost : The increased operational costs of Regional Rural Banks (RRBs) in comparison to scheduled commercial banks.The government desires that they work to increase their profits. • Activities are restricted:Many of these...

Regional Rural Banks (RRB) also called as Gramin Bank are Indian Scheduled Commercial Banks (Government Banks) operating at regional level in different States of India. These Banking System is established by Government of India for the development of rural areas in the country by providing banking facilities to rural and semi-urban areas. Considering the absence of proper banking facilities in the rural areas ,RBI in consultation with Central Government, State Government and some major nationalized banks set up the RRB’s to improve the economical status of rural people. The RRB’s are controlled by NABARD (National Bank for Agricultural and rural Development). RBI provides concessions to RRB’s like lower interest rates, refinancing facilities from NABARD like lower cash ratio, lower statutory liquidity ratio, Lower rate of interest on loans taken from sponsoring banks & reimbursements of the expenses on staff training. In this article we will discuss about History,Role of RRB’s, list of RRB’s etc. History of RRB Under the provisions of an Ordinance passed on 26 September 1975 and the RRB Act 1976 Regional Rural Banks were established to provide credit facilities to weaker sections in rural areas particularly small & marginal farmers, agricultural labourers, artisans & small entrepreneurs. At first 5 RRB’s were set up upon recommendation of Narasimham Committee working Group and was sponsored by Syndicate bank, State Bank of India,Punjab National Bank,United Commercial bank ...

Regional Rural Banks conduct banking activities for the rural regions at the district level in the states and may cover multiple districts within a state. Established with the purpose of providing easily accessible banking and credit facilities to the rural population and mobilising financial resources from the urban areas to rural districts of India, RRBs are a crucial part of the financial industry. In the late 20th century, banking was more accessible to the urban crowd with limited access to the rural population. Regional Rural Banks (RRB) were established as government-sponsored, regional based rural lending institutions to balance the economic development and equally distribute banking in the urban and rural areas of India. They were first launched in 1975 with the Ordinance for establishing Regional Rural Banks passed on September 26, 1975. The Regional Rural Banks Act (RRB Act) was passed in 1976. Some distinct features of RRBs are: • RRBs have the characteristics of both a commercial bank and a co-operative bank. It has the professionalism and ability to mobilise financial resources like a commercial bank and is familiar with rural problems like a co-operative bank. • RRBs ensure adequate credit for agriculture and other rural sectors. • Like any commercial bank, RRBs have a board of directors, a chairperson, a managing director, a manager, regional managers, and other staff. • According to the RRB Act 1976, RRBs provide financial assistance to farmers, Medium and...

IBPS RRB 2023 Notification Out: Every year, the Institute of Banking Personnel Selection (IBPS) invites banking aspirants who are willing to apply for the post of Officers (Scale I, Scale II, and Scale III) and Office Assistants for all the participating Regional Rural Banks (RRBs) across the country. For selection to the post of both Assistant and Officer Cadre in Regional Rural Banks (RRBs) spread across the country, IBPS organises IBPS RRB Exam every year. The selection is made for the post of: Office Assistant Marketing Manager Treasury Manager Officer Scale – I Banking Officer Scale - II Agriculture Officer (Grade – II) Law Officer (Grade – II) Law Officer (Grade – II) Chartered Accountant (Grade II) Officer (Grade III) IT Officer (Grade II) IBPS RRB is a national-level banking exam conducted every year by the Institute of Banking Personnel Selection (IBPS) for candidates who aspire to join the Regional Rural Bank (क्षेत्रीय ग्रामीण बैंक). Let’s take a look at both these exams: IBPS RRB 2023 Notification Out IBPS has released the window advertisement for IBPS RRB Notification 2023 to recruit eligible banking aspirants for 9075 vacancies (revised) for Office Assistant (Clerk) and Officers Scale-I, II & III posts in different Regional Rural Banks (RRBs) across the country. The detailed IBPS RRB (CRP RRBs-XII) Notification 2023 has been released with eligibility criteria, online application link, vacancies, selection process, exam centers, pattern and syllabus etc. Let's...

Regional Rural Bank (RRB) Regional Rural Banks were established under the provisions of an Ordinance passed on 26 September 1975 and the RRB Act 1987 to provide sufficient banking and credit facility for agriculture and other rural sectors. Regional Rural Banks (RRB) are Indian Scheduled Commercial Banks ( Government Banks) operating at regional level in different states of India. They have been created with a view of serving primarily the rural areas of India with basic banking and financial services. However, RRBs may have branches set up for urban operations and their area of operation may include urban area too. The area of operation of RRBs is limited to the area as notified by Government of India covering one or more districts in the State. RRBs perform various functions in following heads: • Providing banking facilities to rural and semi –urban areas. • Carrying out government operations like disbursement of wages of MGNREGA workers, distribution of pension etc. • Providing Para-Banking facilities like locker facilities, debit and credit cards, mobile banking, internet banking, UPI etc. Our Bank has sponsored one Regional Rural Bank namely Chaitanya Godavari GrameenaBank(CGGB) having its Head Office in Guntur. The operation area of the Bank is spread across Guntur, East Godavari and West Godavari Districts in Andhra Pradesh State. CGGB is having the network of 220 branches and one extension counter. All Branches of the Bank are under CBS. CGGB has secured following ...