Regional Rural Banks(RRBs)

1.       Regional Rural Banks

Regional Rural Banks were first setup in 1975 with the aim to take banking services to the door steps of
Rural Masses especial in remote arias with no banking services.It had mainly 2 objectives:

--provide credit to weaker sections at concessional rate who depend on private money lenders

--mobilise rural savings

Kelkar committee 1987,recommended to stop opening of new banks.as they were incurring huge losses.

For restructuring and restrengthening of RRBs  Bhandari committee and Basu Commitees set up.Results

--Obligation of concessional rate of interest remo ved.

--now free to lend to any body not necessarily weaker and rural sections

At present 80+ RRBs and amalgation of RRBs with nationalised and PSUs going on.(3 tier structure)