Question

Examine the salient features of Regional Rural Bank.

Answer 1

The objective of regional rural banks is to develop the rural economy by providing credit and other facilities for agriculture and other productive activities in rural areas. They provide these facilities to small and marginal farmers, rural artisans, agricultural labourers and other small entrepreneurs working in the rural areas.

Some salient features of regional rural banks are:

1. The area of operation of a rural bank is limited to a specified region which comprises of one or more districts.

2. These banks cannot have a lending rate which is higher than the prevailing lending rate of cooperative credit societies in any particular state.

3. The salary structure of the employees of these banks is fixed in consonance with the salary structure of the employees of the state government, local authorities of comparable level and status in the area.

4. They are public sector banks. The paid-up capital of each bank is Rs. 25 lakhs. 50 percent of the capital is contributed by the Central Government. The concerned state government contributes 15 percent. 35 percent is contributed by the sponsoring public-sector commercial banks.

Answer 2

Regional Rural Bank has worked together and branches in country India while Nationalized Bank has branches according to the introduction in Pacific state they have or else pan India nearness. 

RRB investors patter is similarly supported bank 35%, state government 15% and central government 50% and in nationalized bank coordinate control of GOI. 

RRB idea originated from Bangladesh their it's was created in light of the fact that different banks won't go down and work together so to help country individuals and agriculturists to get fundamental finance facilities. Furthermore, their objective market is provincial and rural regions.