To honor the milestone National Bank for Agriculture and Rural Development (NABARD), in partnership with the Department of Financial Services, Union Ministry of Finance, is organizing special national event in New Delhi.
About Regional Rural Banks (RRBs)
- Established: Established in 1975 under an Ordinance, which was followed by enactment of the Regional Rural Banks Act of 1976.
- Objective: To create an alternative channel to the cooperative credit structure so as to facilitate an expanded bandwidth of institutional credit for agriculture and rural sector.
- Shareholding Structure: Share capital of RRBs is contributed by the Government of India, the concerned State Government, and the sponsoring bank in a 50%, 15%, and 35% proportion, respectively.
- Target Clients: They provide loans and advances mostly to small and marginal farmers, agricultural labourers, rural artisans, and other priority sectors in rural and semi-urban areas.
- Regulation and Supervision: RRBs are regulated by the Reserve Bank of India (RBI) under the Banking Regulation Act, 1949 and supervised by NABARD.
- Priority Sector Lending: Must allocate 75% of ANBC (Adjusted Net Bank Credit) or CEOBE (Credit Equivalent of Off-Balance Sheet Exposure) whichever is higher to priority sector.
- Amalgamation: Following the recommendations of the Dr. V.S. Vyas Committee in 2001, a consolidation process for RRBs began in 2005 to provide better customer service through improved infrastructure and computerization.
Current Status and Performance of RRBs
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