Explanation:

Regional Rural Banks (RRBs) are regulated by the Reserve Bank of India(RBI) along with the National Bank for Agriculture and Rural Development (NABARD).? In the mid-1970s, it was recognized that more systematic and coordinated efforts were required to strengthen the flow of institutional rural credit. ? The aim is to develop the rural economy by providing credit for both agricultural and non-agricultural productive activities, with a focus on the most vulnerable groups, such as small and marginal farmers, agricultural laborers, artisans, and small businesses. ? In its report dated July 30, 1975, the Working Group headed by Shri M. Narsimham recommended the establishment of a new type of institution to supplement the efforts of commercial and cooperative institutions in the rural sector.? Such Rural banks were to be established in areas with a weak structure. ? This was the start of Regional Rural Banks, which made rapid progress that followed. ? The first five regional rural banks were established on October 2, 1975, in West Bengal, Uttar Pradesh, Rajasthan, and Haryana. ? In 1977, the government established the Review Committee on Regional Rural Banks, chaired by Prof. M.L. Dantwala, to investigate the operation of RRBs.? The committee made several recommendations, including encouraging the establishment of RRBs in areas where central cooperative banks can be converted to RRBs. ? According to the committee, the better-off segments of rural society should not be completely denied credit because this would have a negative impact on mobilization and depress it.