Regional Rural Banks (RRBs) were created following the recommendations of the Narasimham Working Group (1975) to address credit gaps in rural areas. Currently, there are 43 RRBs operating across 26 states and two Union Territories, but post-amalgamation, there will be 28 RRBs.
Consider the following statements about RRBs:
1. RRBs were established to provide affordable banking facilities to rural communities.
2. RRBs are jointly owned by the Central Government, Sponsor Bank, and State Government.
3. The PSL target for RRBs is lower than that of other commercial banks.
4. Modern banking technology adoption is a focus of the recent RRB amalgamation.
1 and 2 onlyIncorrect Answer
3 and 4 onlyIncorrect Answer
1, 2, and 4 onlyCorrect Answer
2 and 3 onlyIncorrect Answer
Explanation:
Statement 1 is correct. RRBs were indeed established to provide affordable banking and credit facilities to rural communities.
Statement 2 is correct. RRBs are jointly owned by the Central Government (50%), Sponsor Bank (35%), and State Government (15%).
Statement 3 is incorrect. The PSL target for RRBs (75%) is higher than that of other commercial banks (40%).
Statement 4 is correct. The focus on technology adoption is part of the recent amalgamation to enhance banking services.
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By: susheel