Regional Rural Bank (RRB): क्षेत्रीय ग्रामीण बैंक
Establish : 2 October 1975
Act: RRB act 1976 (Which is passed in 1975)
Committee: Narasimhan Committee
Start-up Capital: 5 cr.
Present Capital: 2000 cr.
1st RRB Bank: Prathma Bank (syndicate bank, Moradabad, Up)
RRB Bank in Bihar (India):
UBGB – Central Bank of India
MBGB – PNB Bank
BGB – UCO Bank
Objective of RRB bank:
- The major objective or RRB’s are to develop rural economy
- Each RRB owned jointly by central government, state government and sponsor in the ratio of 50%, 15%, 35% respectively.
- RRB maintain CAR 9%
- Each RRB Function in a compact area of few district in one state.
- NABARD is giving RRB short-term & Long-term loan
- No RRB in Sikkim & Goa
- In September 2005, Number of RRB banks = 196
- Presently, there are 56 RRB operating in India
Guideline For RRB: क्षेत्रीय ग्रामीण बैंक
- Each RRB should formulate action plan to achieve self-target by end March 2017.
- Opening New branches fully equipped with technology & CBS
- Achieving 100% financial inclusion
- Improving CAR 9%.
- Gross NPA less than 3%
- RTGS and NEFT are online fund transfer way which is used by the help of sponsor bank
Board of Director of RRB: क्षेत्रीय ग्रामीण बैंक
1 Chairman – Appointed by central government
3 Director – Appointed by central government
3 Director – Appointed by sponsor bank
2 Director – Appointed by state government
Generally, the chairman of RRB belongs from sponsored bank.
According to Kelkar committee report, None of the RRB bank is open after April 1987