project report on ruler banks
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Answer:
1. What Is Rural Banking? • It is the form of services that provide solution to the financial needs of the customer in rural areas. • Government of India promoted Regional Rural Banks (RRBs) through the RRBs Act of 1976 to bridge the gap in the flow of credit to the rural poor.
Objectives Of Banking Services In Rural Areas • To save the rural poor from the money lenders. • To act as a catalyst element and thereby accelerate the economic growth in the particular region. • To cultivate the banking habits among the rural people and mobilize savings for the economic development of rural areas. • To encourage entrepreneurship in rural areas. • To develop underdeveloped regions and thereby strive to remove economic disparity between regions.
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.
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.