The first Regional Rural Bank was established in India in the year:
1975
Understanding Regional Rural Banks in India
Regional Rural Banks (RRBs) are financial institutions in India that aim to provide banking and financial services to the rural areas. They were established with the primary objective of serving the credit needs of weaker sections of society, such as small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs.
Establishment of the First Regional Rural Bank
The concept of Regional Rural Banks was based on the recommendations of the Narasimham Committee, which was set up in 1975. Following these recommendations, an ordinance was promulgated on September 26, 1975, which led to the establishment of the first five Regional Rural Banks on October 2, 1975. This was a significant step towards extending formal banking facilities to the unbanked and underbanked rural regions of India.
The Regional Rural Banks Act, 1976, was later enacted to provide a legislative basis for the continued existence and functioning of RRBs.
Objectives of Regional Rural Banks
The main objectives behind establishing Regional Rural Banks included:
- Providing credit and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs in rural areas.
- Bridging the credit gap in rural areas.
- Mobilizing rural savings and channelizing them for productive activities in rural areas.
- Checking the outflow of rural deposits to urban areas.
- Reducing dependence on moneylenders for financial needs.
- Promoting overall rural development.
Therefore, the first Regional Rural Bank in India was established in the year 1975.
Revision Table: Key Facts on RRBs
| Aspect | Details |
|---|---|
| Establishment Year of First RRBs | 1975 |
| Basis of Establishment | Narasimham Committee recommendations |
| Enabling Legislation | Regional Rural Banks Act, 1976 (Ordinance in 1975) |
| Primary Objective | Rural credit and banking for weaker sections |
Additional Information: Deep Dive into Regional Rural Banks
Regional Rural Banks are jointly owned by the Government of India, the concerned State Government, and a Sponsor Bank. The capital shareholding pattern for RRBs is:
- Government of India: 50%
- Sponsor Bank: 35%
- State Government: 15%
The Sponsor Bank is typically a Public Sector Bank and is responsible for providing managerial and financial assistance to the RRB sponsored by it.
Supervision and regulation of RRBs are carried out by the National Bank for Agriculture and Rural Development (NABARD). RRBs play a crucial role in financial inclusion by extending banking services to remote rural areas where commercial banks may not have a wide presence. Over the years, RRBs have undergone structural changes, including amalgamation, to improve their viability and operational efficiency.
Important Questions from Miscellaneous
A stone is thrown horizontally from the top of a 20 m high building with a speed of 12 m/s. It hits the ground at a distance R from the building. Taking g = 10 m/s2 and neglecting air resistance will give :
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A railway wagon (open at the top) of mass M1 is moving with speed v1 along a straight track. As a result of rain, after some time it gets partially filled with water so that the mass of the wagon becomes M2 and speed becomes v2. Taking the rain to be falling vertically and the water stationery inside the wagon, the relation between the two speeds v1 and v2 is :
Consider the following statements:
1. Distance between the longitudes becomes zero on North Pole and South Pole.
2. Distance between the longitudes is maximum on the Equator.
3. Number of longitudes is more than number of latitudes.
Which of the statements given above is/are correct?
One block of 2⋅0 kg mass is placed on top of another block of 3⋅0 kg mass. The coefficient of static friction between the two blocks is 0⋅2. The bottom block is pulled with a horizontal force F such that both the blocks move together without slipping. Taking acceleration due to gravity as 10 m/s2, the maximum value of the frictional force is :
