Which of the following statements regarding 39 Regional Rural Banks 39 is are incorrect They were se...........

Economic Affairs Types of Banks and Banking

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Which of the following statements regarding 'Regional Rural Banks' is/are incorrect?

They were set up as government-sponsored, region based rural lending institutions under the Banking Regulations Act, 1949.
They are non-scheduled banks and owned jointly by the Union Government and the State Government only.
They provide facilities only to the rural areas.

Select the correct answer using the codes given below

Only one statement is correct

Only two statements are correct

Only three statements are correct

All statements are incorrect

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Explanation:

Fourth option is correct.

RRBs were set up as government-sponsored, regional based rural lending institutions under Regional Rural Banks Act, 1976. They are scheduled commercial banks (Government banks) and are configured as hybrid micro banking institutions. RRBs provide banking facilities to rural and semi-urban areas.