Q.Explain the role of the Manipur Rural Bank and cooperative/regional rural banks in financial inclusion.

Ordinary commercial banks find it costly to serve scattered rural and hill areas, so specialised rural institutions were created to fill the gap.

Regional rural banks (RRBs) and cooperative banks were created specifically to serve rural and agricultural customers whom large commercial banks find costly to reach, and they are key channels of financial inclusion.

The Manipur Rural Bank (MRB):

• Established in 1981 as a joint undertaking of the Government of India, the Government of Manipur and a sponsor public-sector bank.
• Created to take banking into the rural and semi-urban areas of the state.
• Offers savings accounts and RuPay debit cards, and took part in the PMJDY account-opening drive.

Cooperative banks similarly channel credit to farmers and small borrowers at the local level. Together, these institutions:

• reach villages where opening a full commercial branch is uneconomic; …

Confusing a regional rural bank with an ordinary commercial bank, or not knowing that the Manipur Rural Bank was set …