Consider the following statements with reference to Regional Rural Banks RRBs RRBs were set up as a ...........

Indian Economic System(HCS) Money and banking

Consider the following statements with reference to Regional Rural Banks (RRBs)

RRBs were set up as a regional based rural lending institutions under the Regional Rural Banks Act, 1976.
They were established based on the recommendations of Rangarajan Committee working group.
RRBs are permitted to access the liquidity windows of the RBI like Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF).

Select the correct statement.

1&2 only

2&3 only

1&3 only

All of the above

Only statements 1&3 are correct.

Reserve Bank of India (RBI) has recently allowed Regional Rural Banks (RRBs) to access the Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) and call or notice money market, aimed at facilitating better liquidity management for these lenders.
At present, RRBs are not permitted to access the liquidity windows of the RBI as well as the call or notice market.

Regional Rural Banks (RRBs)

They were set up as a regional based rural lending institutions under the Regional Rural Banks Act, 1976.
They were established based on the recommendations of Narsimham Committee working group.
The first Regional Rural Bank “Prathama Grameen Bank” was set up on 2nd October, 1975.

Hence option 3rd is correct.