{"id":31003,"date":"2025-12-19T12:35:02","date_gmt":"2025-12-19T07:05:02","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=31003"},"modified":"2025-12-20T13:37:20","modified_gmt":"2025-12-20T08:07:20","slug":"regional-rural-banks","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/regional-rural-banks\/","title":{"rendered":"Regional Rural Banks (RRBs)"},"content":{"rendered":"<h2><b>Regional Rural Banks (RRBs) Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Finance Ministry recently unveiled a new logo for Regional Rural Banks (RRBs) to signify a single and unified brand identity.<\/span><\/p>\n<h2><b>About Regional Rural Banks (RRBs)<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">RRBs were established in India to promote <\/span><b>financial inclusion in rural areas.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They are formed in <\/span><b>collaboration by the Central Government, State Governments<\/b><span style=\"font-weight: 400;\">, and <\/span><b>Sponsoring Commercial Banks<\/b><span style=\"font-weight: 400;\"> to <\/span><b>give loans to rural areas.<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Their mission is to <\/span><b>fulfill the credit needs<\/b><span style=\"font-weight: 400;\"> of the relatively <\/span><b>unserved sections in rural areas: small and marginal farmers, agricultural labourers, and socio-economically weaker sections.<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Origin<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It was established under the <\/span><b>Regional Rural Banks Act, 1976,<\/b><span style=\"font-weight: 400;\"> on the <\/span><b>recommendation of<\/b><span style=\"font-weight: 400;\"> the <\/span><b>Narasimham Committee<\/b><span style=\"font-weight: 400;\"> o<\/span><b>n Rural Credit (1975).\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Rathama Grameen Bank<\/b><span style=\"font-weight: 400;\"> was the <\/span><b>first RRB bank<\/b><span style=\"font-weight: 400;\"> and was established on 2nd October 1975.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">RRBs were configured as <\/span><b>hybrid microbanking institutions,<\/b> <b>combining <\/b><span style=\"font-weight: 400;\">the local orientation and <\/span><b>small-scale lending culture of the cooperatives with the business culture of commercial banks.<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RRBs <\/span><b>mobilize financial resources from rural\/semi-urban areas<\/b><span style=\"font-weight: 400;\"> and <\/span><b>grant loans<\/b><span style=\"font-weight: 400;\"> and advances <\/span><b>mostly to small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">RRBs perform <\/span><b>various functions<\/b><span style=\"font-weight: 400;\"> in the following heads:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Providing <\/span><b>banking facilities to rural and semi-urban areas.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Carrying out <\/span><b>government operations<\/b><span style=\"font-weight: 400;\"> like the <\/span><b>disbursement of wages<\/b><span style=\"font-weight: 400;\"> of MGNREGA workers, <\/span><b>distribution of pension<\/b><span style=\"font-weight: 400;\">, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Providing<\/span><b> Para-Banking facilities <\/b><span style=\"font-weight: 400;\">like <\/span><b>locker facilities, debit and credit cards,<\/b><span style=\"font-weight: 400;\"> m<\/span><b>obile banking, internet banking, UPI,<\/b><span style=\"font-weight: 400;\"> etc.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RBI has set a <\/span><b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/priority-sector-lending-psl\/\" target=\"_blank\">Priority Sector Lending<\/a> (PSL) target of 75% <\/b><span style=\"font-weight: 400;\">of total outstanding advances for RRBs as against 40% for Scheduled Commercial Banks.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Ownership<\/b><span style=\"font-weight: 400;\">: Sponsored by the Commercial Banks, the <\/span><b>equity <\/b><span style=\"font-weight: 400;\">of RRBs is held by the <\/span><b>central government, concerned state government, and the sponsor bank<\/b><span style=\"font-weight: 400;\"> in the <\/span><b>proportion of 50:15:35.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>area of operation<\/b><span style=\"font-weight: 400;\"> of RRBs is limited to the area as <\/span><b>notified by the Government of India, covering one or more districts in the State.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Regulation<\/b><span style=\"font-weight: 400;\">: Regional Rural Banks are <\/span><b>regulated by the RBI <\/b><span style=\"font-weight: 400;\">and <\/span><b>supervised by<\/b><span style=\"font-weight: 400;\"> the National Bank for Agriculture and Rural Development (<\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/national-bank-for-agriculture-and-rural-development-nabard\/\" target=\"_blank\"><b>NABARD<\/b><\/a><span style=\"font-weight: 400;\">).<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Sources of Funds<\/b><span style=\"font-weight: 400;\">: It comprises <\/span><b>owned funds, deposits, borrowings from NABARD<\/b><span style=\"font-weight: 400;\">, <\/span><b>sponsor banks<\/b><span style=\"font-weight: 400;\"> and other sources, including SIDBI and the National Housing Bank.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Management<\/b><span style=\"font-weight: 400;\">: The <\/span><b>Board of Directors manages<\/b><span style=\"font-weight: 400;\"> these banks, overall affairs, which consists of <\/span><b>one Chairman, three Directors as nominated by the Central Government,<\/b><span style=\"font-weight: 400;\"> a maximum of two Directors as nominated by the concerned State Government, and a maximum of three Directors as nominated by the sponsor bank.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b style=\"font-size: inherit;\">At present, 28 RRBs operate<\/b><span style=\"font-weight: 400;\"> across the country with a vast network of over 22 thousand branches in more than 700 districts.<\/span><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.thehindu.com\/business\/finance-ministry-unveils-new-logofor-regional-rural-banks\/article70413083.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Regional Rural Banks (RRBs) are formed in collaboration by the Central Government, State Governments, and Sponsoring Commercial Banks to give loans to rural areas. Read more about Regional Rural Banks (RRBs), Origin, Purpose, Regulation, Latest News.<\/p>\n","protected":false},"author":5,"featured_media":78737,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[21,4301,22,23],"class_list":{"0":"post-31003","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-prelims-pointers","9":"tag-regional-rural-banks-rrbs","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=31003"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31003\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/78737"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=31003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=31003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=31003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}