The first Regional Rural Bank ldquo Prathama Grameen Bank rdquo was set up on 2nd October 1975 Which...........

Economic and Social Issues Rural Banking and financial institutions

Recently, the Centre has approved a Rs. 1340-crore recapitalisation plan for Regional Rural Banks (RRBs).The move is crucial to ensure liquidity in rural areas during the lockdown due to the COVID-19 crisis.
This recapitalisation would improve their capital-to-risk weighted assets ratio (CRAR) and strengthen these institutions for providing credit in rural areas.The step will help those RRBs which are unable to maintain a minimum CRAR of 9%, as per the regulatory norms prescribed by the RBI.
The release of the Rs. 670 crore as the central share funds will be contingent upon the release of the proportionate share by the sponsor banks.
The recapitalisation process of RRBs was approved by the cabinet in 2011 based on the recommendations of a committee set up under the Chairmanship of K C Chakrabarty.
The National Bank for Agriculture and Rural Development (NABARD) identifies those RRBs, which require recapitalisation assistance to maintain the mandatory CRAR of 9% based on the CRAR position of RRBs, as on 31st March of every year.
The scheme for recapitalization of RRBs was extended up to 2019-20 in a phased manner post 2011.

The first Regional Rural Bank “Prathama Grameen Bank” was set up on 2nd October, 1975. Which Scheduled Bank sponsered the “Prathama Grameen Bank” ?

State Bank of India

Syndicate Bank

Corporation Bank

Bank of Baroda

Punjab National Bank

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Explanation:

Regional Rural Banks were set up on the basis of the recommendations of the Narasimham Working Group (1975), and after the legislation of the Regional Rural Banks Act, 1976.
The first Regional Rural Bank “Prathama Grameen Bank” was set up on 2nd October, 1975. This bank was sponsered by Syndicate Bank.Syndicate Bank is one of the oldest and major commercial banks of India.Presently, the bank is sponsoring 3 RRBs and all are profit making having total business of Rs.42101 crore with 1348 branches as on 31.03.2015.
Prathama Bank
Karnataka Vikas Grameena Bank
Andhra Pragathi Grameena Bank