make a project report on rural banks
Answers
Explanation:
The idea of establishing Regional Rural Banks was mooted in the Twenty Point Economic Programme of July 1975 to cater to the credit needs of rural people.
The Government of India appointed Narasimham Committee in July 1975 to set up the new institution in order:
(i) To provide employment to the rural educated youth; and
(ii) To bring down the cost of rural banks by recruiting their staff on the same scale of pay and allowances as for the employees of State Government/local bodies. It was on the recommendations that the first five RRBs were set up on 2 October, 1975 under an Ordinance promulgated on 26 September, 1975 which was replaced by the Regional Rural Banks Act of 1976.
The major objectives of the RRBs are to develop the rural economy by providing credit and other facilities for agriculture, trade, commerce, industry and other productive activities in the rural areas, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs.
Organisational Structure of Regional Rural Banks:
A Regional Rural Bank is sponsored by a commercial bank. For this purpose, the sponsor bank requests the Central Government, which issues a notification after consulting the concerned State Government. Normally, a RRB covers one district but it is also permitted to open its branches in other districts. So far the maximum coverage has been eight districts, as in the case of Manipur Regional Rural Bank which covers the entire State of Manipur.
The authorised capital of an RRB at present is Rs.5 crores. The issued share capital is Rs.1 crore now and is subscribed by the Central Government, the sponsor bank and the concerned State Government in the ratio of 50:35:15.
The Government of India raised the issued share capital of 27 RRBs from Rs.50 lakh to Rs.75 lakh and of 42 RRBs from Rs.75 lakh to Rs.1 crore during 1994-95. This has raised the number of RRBs having issued capital of Rs.1 crore to 62 and those having issued capital of Rs.75 lakh to 122.
The RRB is governed by a Board of Directors who exercises all the powers and discharges all the functions of RRB. It consists of a Chairman appointed by the Central Government for five years, three directors nominated by the Central Government, two directors nominated by the concerned State Government, and three directors nominated by the sponsor bank. Usually the Chairman of the RRB belongs to the sponsor bank, though he is nominated by the Central Government.
The NABARD is vested with powers of inspection of RRBs and to call for any data from them. For opening of new branches, applications are routed through NABARD to Reserve Bank of India for issue of licences. The responsibility of overseeing the overall functioning of RRBs rests on NABARD. NABARD also provides refinance at concessional interest rate to RRBs.
Functions of Regional Rural
answer:
Cons in rural banking are
- It has helped in raising farm and non-farm yield by offering colourful types of backing and credit offers to growers.
- It has helped in negotiating food security which is reflected in the generous loads of grains.
- It gives long-term credits better payment choices. It accordingly helps in disposing of moneylenders from the scene.
- It appreciatively affects pay and business, particularly after green development.
- Accept Deposits. RRBs accept deposits from their members who hold an account in the bank.
- Loan Extension. The RRB Act of 1975 countries that the RRB can extend loans and credit services to the Priority Sector( PS).
- It pays envelope disbursement.
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