Regional Rural Banks

Regional Rural Banks (RRBs):-

RRBs are incorporated with a view to developing the rural economy. RRBs are covered under the type of Scheduled Commercial Banks (Government Banks).

RRBs are regulated under the Regional Rural Banks Act, 1976.

All the RRBs are covered under Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme and they also required observing the RBI stipulations for Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).

In respect of scheduled commercial banks, the interest rates are presently in range of 7.65% to 8.10%.

Presently there are 43 RRBs in India (as on 1-4-2020).

Kerala Gramin Bank is the biggest RRB in India by business. It was formed in 2013 by merging of north Malabar bank and south Malabar bank.

Functions of Regional Rural Bank:

· Banking facilities to rural and semi-urban areas.

· Carrying out government operations like disbursement of wages of MGNREGA workers, distribution of pensions, etc.

· Granting loans to small and marginal farmers, co-operative societies and to individuals including artisans, small entrepreneurs and persons of small means.

· Invest in government securities and deposit schemes of bank and financial institutions.

Disclaimer:

The contents of this article are solely for informational purpose. It does not constitute any professional advice. The author does not represent that the contents of the article are accurate or complete. Neither the Site/Blog 'Your Instasolv' and the author accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

Comments

Form GNL-1 for extension of AGM

Procedure for extension of AGM Recently on 21st April, 2020 Ministry of Corporate Affairs (MCA) issued the circular for companies under which authority provided the ease of holding AGM (Annual General Meeting) due to the outbreak of COVID-19. (Copy of which is enclosed in the last) As per Section 96(1) of the Companies Act, 2013 , the Registrar of Companies (ROC) may extend the time limit of holding AGM up to maximum period of three months ; however extension doesn’t apply on first AGM. In order to apply for extension, an application needs to be submitted in e-form GNL-1. Steps to fill e-Form GNL-1:- Download the requisite form from “Forms and Download” section on the MCA site. (www.mca.gov.in) 1) Select the Category of applicant from the provided drop down list. 2) Now, you need to fill CIN No of the company and then click on the prefill button after which point 4 (i.e., basic details of the company) will be auto-fill. 3) ...

Purpose of the Insolvency & Bankruptcy Code, 2016

The code gets its consent on- By Lok Sabha- 5th May 2016 By Rajya Sabha- 11th May 2016 By President- 28th May 2016 Thus the code came into force on 28th May 2016 , as notified by the Central Government in the Official Gazette. The code has extended to the whole of India. Four Pillars of the Code The IBC, 2016 is based on a four-pillar institutional framework, comprising- • NCLT and NCLAT, the adjudicating authority, • Insolvency and Bankruptcy Board of India, the regulator of insolvency professionals and insolvency professional agencies, • Insolvency professionals, the class of regulated persons responsible for the efficient execution of the processes specified under IBC, and • Information utilities, the new industry to electronically store facts about lenders and terms of lending. The main purpose of the code is- to reach a level where there would be the time-bound settlement of insolvency. to resolve India's bad debts problem by creating a database of defaulters. to de...

How to calculate income tax relief under section 89(1)?

What is Section 89(1) It is a relief provided by the income tax department in relation to amount received in advance or in arrears in the form of salary which is related to any other financial year. Basically, when any person receive salary in arrears or in advance in any particular year then there might be chances that their income will falls in the higher slab and taxed at the higher rate, which would have not been the case if the same salary is receive in their respective year. Therefore, to avoid such higher tax due to timing difference, income tax department has provided relief under section 89(1) Steps to calculate the relief u/s 89(1) Step 1 Calculate the tax payable on total income including arrears of relevant previous year in which salary should have been received. (A) Step 2 Calculate the tax payable on total income excluding arrears of relevant previous year in which salary should have been received. (B) Step 3 Calculate difference between A-B=(C) Step 4 Calculate tax...

Your Instasolv

Search This Blog