Question

The rural banking structure in India consists of a set of multi-agency
institutions.
(Regional Rural Banks / Small Industries
Development Bank of India) is expected to dispense credit at cheaper rates
for agricultural purposes to farmers.​

Answer 1

Explanation:

The institutional structure of rural banking today consists of a set of multi-agency institutions, namely, commercial banks, Regional Rural Banks (HHBs), co-operatives and land development banks Recently, Self-Help Groups (henceforth SHGs) have emerged to fill the gap in the formal credit system.

Answer 2

Regional Rural Banks is the correct answer.

The rural banking structure in India consists of a set of multi-agency institutions. Regional Rural Banks is expected to dispense credit at cheap rates for agricultural purposes to farmers.

• The main purpose for the establishment of these banks was to provide credit and other banking facilities to small and marginal farmers and other small agricultural workers.
• These banks led to the development of agricultural, business, industry in the rural areas of the country.
• the concept was started by M. Swaminathan who is regarded as father of this initiative.
• Baroda UP Bank is the largest Regional Rural Bank Of India.
• There are almost 43 Regional Rural Banks in India serving almost 525 districts across the country.
• Small Industries Development Bank Of India is incorrect because it was formed to regulate small, micro and medium enterprises.

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