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.

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