Q.Write a note on Regional Rural Banks (RRB).

Regional Rural Banks (RRBs), established under the RRB Act 1976, provide institutional credit to the rural weaker sections and are jointly owned by the Centre, the State and a sponsor commercial bank.

Regional Rural Banks (RRBs):

• Origin — the first RRBs were set up on 2 October 1975 and later given statutory backing by the RRB Act, 1976, on the recommendation of the Narasimham Working Group.
• Objective — to develop the rural economy by providing credit and banking facilities to small and marginal farmers, agricultural labourers, rural artisans and small entrepreneurs, and to free them from moneylenders.
• Ownership pattern — jointly owned by the Central Government (50%), the State Government (15%) and a sponsoring commercial bank (35%). …