The latest addition to the string of changes introduced by the ministry of corporate affairs mca this year is an exemption to regional rural banks rrbs from the applicability of the merger control regime. Regional rural banks in india s mainly focussed upon the agro sector. Regional rural banks rrbs are indian scheduled commercial banks government banks operating at regional level in different states of india. The regional rural banks rrbs were established in 1975 under the provisions of the ordinance promulgated on 26th september, 1975 and regional rural banks act, 1976 with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other. There are 56 regional rural banks in india and amongst those, only 45 rrbs will participated in 2019. The mca introduced a notification on august 10, 2017 notification, which stipulates that sections 5 and 6 of the competition act, 2002 act, which relate to regulation of combinations. As gandhiji said real india lies in villages, and village economy is the backbone of indian economy. Cooperative bank is an institution established on the cooperative basis and dealing in ordinary banking business. At to the end of june 1985, 183 regional rural banks with a network of10, 245 branches have been opened in the states of the indian union. The number of branches the sbi regional rural banks is. The study will be literature based and would try to explore the possible impact of bank in rural india and especially challenges and opportunities would be highlighted. A comparative study of regional rural banks in maharashtra.
Rural people in india are still facing problems for inadequate supply of. Further, strengthening rrbs will help them play a greater role in financial inclusion and meeting credit requirements of rural areas, the above. Amuthan excel business school, salem banks play an important role in mobilization and allocation of resources in our country. Performance evaluation of regional rural banks with. They have been created with a view of serving primarily the rural areas of india with basic banking and financial services. Rrbs grant loans to small and marginal farmers, agricultural labourers, cooperative societies and to individuals including artisans, small entrepreneurs and persons of small means. Aug 24, 20 the government of india promulgated the regional rural banks ordinance on26th september 1975, which was later replaced by the regional rural bank act1976. Regional rural banks plays a vital role in the agriculture and. Providing cheap credit facilities to farmers,small entrepreneurs,weaker sections,artisans. What are the salient features of regional rural banks in. As a result, five regional rural banks were set up on 2 october 1975,gandhi jayanti. A study on merger impacts of regional rural banks in india isbn. Today we shall discuss about the structure and capital of rrbs along with their functions and the major differences between commercial banks and rrbs.
The rrb act, 1986, empowers the central government to establish in a state or union territory one or. Structure and functions of the regional rural banks. Performance evaluation of regional rural banks with reference. The regional rural banks did make a laudable progress. At to the end of june 1985, 183 regional rural banks with a network of10, 245 branches have been opened in the states of. Annual reports balance sheets of regional rural banks,2014. The authors would also like to extend special thanks to mr. A network of branches was necessary to extend banking facilities to the people at proper places and at the right time. The financial viability of the rrbs has, however, been a matter of concern since the 1980s, just five years after their existence. The banks and the chartered accountants have a huge role to play in. What are the salient features of regional rural banks in india. All government banks including regional rural banks follow the same pay structures for their employees as per. Nov 20, 2014 regional rural banks were established under the provisions of an ordinance promulgated on the 26th september 1975 and the rrb act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors.
The number of branches the sbi regional rural banks is more than 2000. Considering the gross absence of banking facilities in the rural areas of the country, the reserve bank of india in consultation with the central government, state governments and some major nationalized sponsored banks had set up some regional rural banks in the late. Mcas merger control exemption for regional rural banks. Problems and prospects of regional rural banks in india. These regional rural banks rrbs have been receiving a high degree of importance and attention in the rural credit system. Performance evaluation of regional rural banks in india. Each district had a bank and a network of branches in a single. Regional rural banks in india top bank exam tutorials in. The paper tries to focus the changing paradigm of the indian rural economy and highlight how regional rural banks can assist in restructuring the financial system in rural india. A regional rural bank is popularly known as gramin bank. Regional rural banks in india as asked in ibps regional rural banks are special financial intermediaries that have been formed to cater to the needs of rural masses and weaker sections of the society. The rural banks had the legislative backing of the regional rural banks act 1976. The importance of the rural banking in the economic development of a country cannot be overlooked.
Answer gaurisankar regional rural banks were set up by the government of india under regional rural banks act 1976 they were established for the purpose of providing credit and other facilities to the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs in rural areas. They have been created with a view of serving pr imarily t he rural areas of india w ith bas ic banking and financial services. Regional rural banks rrbs are indian scheduled commercial banks government banks. Regional rural banks in india penetrated every corner of the country and extended a helping hand in the growth process of the country. This act allowed the government to set up banks from time to time wherever it considered necessary. Performance of rrbs before and after amalgamation raijmr. The views expressed here are of the author and not necessarily of the institution to which he belongs. Regional rural bank department of financial services. Regional rural ba nks rrbs are indian scheduled comme rcial banks gov ernment banks ope rating at regional level in different states of india. Without the upliftment of the rural economy as well as the rural people of our country. A study on merger impacts of regional rural banks in india aims. At the end of march 1994, they numbered 196, with about 14,500 branches covering 408 districts. Mar 10, 2015 regional rural banks came into existence on gandhi jayanti in 1975 with the formation of a prathama grameen bank. Since their inception, regional rural banks rrbs have taken deep roots and have become a sort of inseparable part of the rural credit structure in india.
April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Role of commercial banks in rural development pdf role of commercial banks in rural development. Aug 10, 2014 friends, in our last post we have discussed about the introduction and objectives of regional rural banks please read that post here before you proceed further. The creation of regional rural banks rrbs in 1975 to. Increasing employment opportunities by encouraging tr. Regional rural banks came into existence on gandhi jayanti in 1975 with the formation of a prathama grameen bank. Regional rural banks rrbs are financial institutions which ensure adequate credit for agriculture and other rural sectors. All the regional rural banks are authorized to carry on to transact the business of a banking as defined in the banking regulation act 1949. Regional rural banks agricultural finance indiaagronet.
At present, the authorized capital of an rrb is rs. While regional rural banks are meant for rural areas, they can operate in urban areas also. Regional rural banks were set up on the basis of the recommendations of the narasimham working group 1975, and after the legislations of the regional rural banks act, 1976. The narasimhan committee conceptualised the creation of rrbs in 1975 as a new set of regionally oriented rural banks, which would combine the local feel and familiarity of rural problems characteristic of. Mar 24, 2020 regional rural banks rrbs are the indian scheduled commercial government banks operating at regional level in different states of india. A regional rural bank may appoint such number of officers and other employees as it may consider necessary or desirable 19 in such manner as may be prescribed for the efficient performance of its functions and may determine the terms and conditions of their appointment and service. Pdf regional rural banks plays a vital role in the agriculture and rural development of india. Pdf dynamics of performance of regional rural banks a.
The performance of regional rural banks rrbs in india. Regional rural banks rrbs are the indian scheduled commercial government banks operating at regional level in different states of india. Ibps rrb exam is designed only for those skilled young graduates, who are seeking the employment opportunities in indian regional rural banks. They are created with a mandate to provide essential or basic banking and financial services to the rural areas. Tripura, nagaland, manipur, mizoram, arunachal pradesh meghalaya and puducherry, have statelevel rrbs. Salary structure at regional rural banks sehpaathi. A study on merger impacts of regional rural banks in india. Friends, in our last post we have discussed about the introduction and objectives of regional rural banks please read that post here before you proceed further. The rrb act, 1986, empowers the central government to establish in a state or union territory one or more rrbs when any sponsor bank makes such a request the sponsor bank assists the rrb in many ways by subscribing to its share capital, by helping in its establishment, by assisting in recruitment and. The regional rural banks in india has actively contributed to the growth of the rural sector. The role and responcibilities of regional rural banks for. The government took systematic merger plan of rrbs on statewise basis and one rrb started to function in each state province on 31st august, 2005 and as a result, the number of regional rural banks rrbs had reduced to 92 from 196 due to amalgamation of rrbs sponsored by the same bank in a state.
Rrb common written exam cwe is one of the many bank exams conducted by the institute of banking personnel selection ibps. Provided that it shall be lawful for a sponsor bank, if. The state bank of india is one of the major commercial banks having regional rural banks. The role of rrbs can not be ignored in present day banking as these gramin. Regional rural banks are basically, banking organisation for local level operations across the states in india. Regional rural banks rrbs were established in 2nd october,1975 under the provisions of the ordinance promulgated on the 26th september 1975 and followed by regional rural banks act, 1976 with the aim of developing rural economy in all areas like agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and. Functions of the rrbs the rrbs are authorized to continue or carry on. The regional rural banks are the newest form of banks that have been set up in the country on the sponsorship of individual nationalised commercial banks. It was emphasized that the role of rrbs would be to supplement and not supplant other. Organisation, functions and management of regional rural. The preliminary examination will be organized in the months of augustseptember 2018. List of regional rural banks in india ibps participating.
Functions of regional rural banks it is now fully appreciated by economists and government that regional rural banks have to play a very important role in facilitating the process of economic development in rural areas through an effective mobilisation of the resources of the rural community into their most productive uses. Regional rural banks can be traced to the need for a stronger institutional arrangement for providing rural credit. The gramin banks or the regional rural banks rrbsin india have been. However, rrbs may have branches set up for urban operations and their area of operation may include urban areas too. Chandrasekhar among the institutions whose role in the development of the less developed regions is well recognised but inadequately emphasised are the development banks.
Three up regional rural banks to be amalgamated 28 nov, 2019, 08. The growth of the rural industries in india and the development of the rural business and economy have been dependent largely on the investment and financial aids provided by the regional rural banks in india. The narasimhan committee conceptualised the creation of rrbs in 1975 as a new set of regionally oriented rural banks, which would combine the local feel and familiarity of. Banks play an important role in mobilization and allocation of resources in our country. Regional rural banks structure and functions gr8ambitionz. Regional rural banks rrbs of india madhav university. A total of 56 regional rural banks rrbs are participating in this massive recruitment drive by ibps and the vacancy details of the same is available on the official notification. The regional rural banks had implemented the branch expansion programme systematically, covering the nook and corner of the operational area. Pdf the performance of regional rural banks rrbs in india. They have been created with a view of serving primarily the rural areas of india with basic banking and fina. The regional banks that will be participating in ibps rrb recruitment 2019 has been mentioned below. On 31 march 2016, there were 56 rrbs postmerger covering 525 districts with a network of. Pdf the present study focuses on the amalgamation pattern of the fifty six 56 regional rural. Research officer in the department of economic analysis and policy, reserve bank of india and presently working from the patna office of the bank.
There are 30 regional rural banks in india, under the state bank of india and it is spread in states across india. Pdf since their inception, regional rural banks rrbs have taken deep roots and have become a sort of. In rrbs, there are three share holder namely government of india 50% share, sponser bank 35% share, and state government 15% share. Regional rural banks were established under the provisions of an ordinance passed on 26 september 1975 and the rrb act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors. The preamble to the act states the objective to develop rural economy by providing credit and facilities for the development of agriculture, trade, commerce, industry and other productive. Evaluating the efficiency of regional rural banks across. Salary structure at regional rural banks with ibps rrb joining are taking place we are here with salaries of probationary officers in regional rural banks and how different are they from those from probationary officers in nationalized banks. The government of india promulgated the regional rural banks ordinance on 26 th september 1975, which was later replaced by the regional rural bank act 1976.
Sabitha devi 2014 in her work, problems and prospects of regional rural banks in india, tried to find out the problems faced by the regional rural banks and in her work she suggested more involvement of government to improve the status of rrbs. Rural people in india are still facing problems for inadequate. Jul 30, 2017 the regional banks were established by the central government in 1975 to provide basic financial and banking services in rural parts. The trend towards inclusive banking again got a shot in the arm in the mid1970s when a new set of commercial banks, the regional rural banks rrbs, were introduced to improve the efficacy of the rural credit delivery mechanism. The regional banks were established by the central government in 1975 to provide basic financial and banking services in rural parts. A large strata of indias population is unbanked and devoid of even basic banking services. The regional rural banks rrbs aimed at providing credit and other facilities to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in rural areas. Regional rural banks are regulated rbi and supervised by national bank for agriculture and rural development nabard. Rural people in india are still facing problems for inadequate supply of credit. Regional rural banks rrbs were established in 1975, as a lowcost. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. The institution of regional rural banks rrbs was created to meet the excess demand for institutional credit in the rural areas.
Merger of regional rural banks within same state likely. The government of india promulgated the regional rural banks ordinance on26th september 1975, which was later replaced by the regional rural bank act1976. Aug 16, 2017 the mca introduced a notification on august 10, 2017 notification, which stipulates that sections 5 and 6 of the competition act, 2002 act, which relate to regulation of combinations, will not apply to amalgamations of rrbs for which the central government has issued a notification under section 23a1 of the regional rural banks act, 1976. Jun 28, 2017 regional rural banks in india as asked in ibps regional rural banks are special financial intermediaries that have been formed to cater to the needs of rural masses and weaker sections of the society. Pdf the performance of regional rural banks rrbs in.
The genesis of the rrbs can be traced to the need for a stronger institutional arrangement for providing rural credit. To offer suggestions helpful in improving functions on the basis of conclusion. Formation of regional rural banks began during the time of nationalization. Rural banks in those days mainly focused upon the agro sector.
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