{"id":31003,"date":"2026-08-19T12:35:02","date_gmt":"2026-08-19T07:05:02","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=31003"},"modified":"2026-08-19T13:31:29","modified_gmt":"2026-08-19T08:01:29","slug":"regional-rural-banks","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/regional-rural-banks\/","title":{"rendered":"Regional Rural Banks"},"content":{"rendered":"<h2><b>Regional Rural Banks Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Ministry of Finance recently said that Regional Rural Banks (RRBs) have recorded strong growth in credit delivery during the financial year 2025-26.<\/span><\/p>\n<h2><b>About Regional Rural Banks<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">RRBs are financial institutions established to<\/span><b> provide financial services to rural areas.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">They are<\/span><b> formed in collaboration <\/b><span style=\"font-weight: 400;\">by the <\/span><b>Central Government, State Governments,<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Sponsoring Commercial Banks<\/b><span style=\"font-weight: 400;\"> to give loans to rural areas.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The main objectives of setting up the RRB is to <\/span><b>provide credit and other facilities,<\/b><span style=\"font-weight: 400;\"> especially to the <\/span><b>small and marginal farmers, agricultural labourers, artisans,<\/b><span style=\"font-weight: 400;\"> and small <\/span><b>entrepreneurs in rural areas.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><b>Origin<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">RRBs were set up on the basis of the <\/span><b>recommendations <\/b><span style=\"font-weight: 400;\">of the <\/span><b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/narasimham-committee\/\" target=\"_blank\">Narasimham<\/a> Working Group (1975)<\/b><span style=\"font-weight: 400;\"> and after the legislation of the <\/span><b>Regional Rural Banks Act, 1976.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The<\/span><b> first RRB <\/b><span style=\"font-weight: 400;\">\u201c<\/span><b>Prathama Grameen Bank<\/b><span style=\"font-weight: 400;\">\u201d was set up on October 2, 1975.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">At present there are <\/span><b>82 RRBs<\/b><span style=\"font-weight: 400;\"> in India.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><b>Ownership<\/b><span style=\"font-weight: 400;\">: The <\/span><b>equity <\/b><span style=\"font-weight: 400;\">of an RRB is held by the <\/span><b>Central Government, concerned State Government <\/b><span style=\"font-weight: 400;\">and the <\/span><b>Sponsor Bank <\/b><span style=\"font-weight: 400;\">in the proportion of<\/span><b> 50:15:35.\u00a0\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The RRBs combine the characteristics of a cooperative in terms of the familiarity of the rural problems and a commercial bank in terms of its professionalism and ability to mobilise financial resources.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The a<\/span><b>rea of operation<\/b><span style=\"font-weight: 400;\"> of RRBs is l<\/span><b>imited to the area <\/b><span style=\"font-weight: 400;\">as <\/span><b>notified by the Government of India<\/b><span style=\"font-weight: 400;\">, covering one or more districts in the State.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><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 (PSL)<\/a> 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=\"text-align: justify;\"><b>Sources of Fund<\/b><span style=\"font-weight: 400;\">s: It comprises <\/span><b>owned funds, deposits,<\/b> <b>borrowings from NABARD,<\/b> <b>sponsor banks<\/b><span style=\"font-weight: 400;\"> and other sources, including SIDBI and the National Housing Bank.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Regulation<\/b><span style=\"font-weight: 400;\">: RRBs 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 <\/span><b>National Bank for Agriculture and Rural Development (NABARD).<\/b><\/li>\n<li style=\"text-align: justify;\"><b>Management<\/b><span style=\"font-weight: 400;\">: The <\/span><b>Board of Directors <\/b><span style=\"font-weight: 400;\">manages these banks, overall affairs, which consists of <\/span><b>one Chairman, three Directors<\/b><span style=\"font-weight: 400;\"> as <\/span><b>nominated<\/b><span style=\"font-weight: 400;\"> by the <\/span><b>Central Government<\/b><span style=\"font-weight: 400;\">, a <\/span><b>maximum of two Directors<\/b><span style=\"font-weight: 400;\"> as nominated by the concerned <\/span><b>State Government,<\/b><span style=\"font-weight: 400;\"> and a <\/span><b>maximum of three Directors <\/b><span style=\"font-weight: 400;\">as nominated by the <\/span><b>sponsor bank.<\/b><\/li>\n<\/ul>\n<p><b>News: <\/b><strong><a href=\"https:\/\/newsonair.gov.in\/regional-rural-banks-promote-rural-economic-development-by-expanding-credit-delivery\/\" target=\"_blank\" rel=\"nofollow noopener\">NOA<\/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.<\/p>\n","protected":false},"author":5,"featured_media":119907,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[9638],"class_list":["post-31003","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-prelims-current-affairs","tag-regional-rural-banks","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":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31003\/revisions"}],"predecessor-version":[{"id":120003,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31003\/revisions\/120003"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/119907"}],"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}]}}