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Question

Which among the following sponsors Regional Rural Banks (RRB'S)?

This question was previously asked in
SSC CGL 2017 (Tier 1) Previous Year Paper (16-Aug-2017) (Shift 1)
The correct answer is

National Commercial Banks

Regional Rural Banks (RRBs) were set up under the RRB Act, 1976 on the recommendations of the Narasimham Working Group, and each RRB is sponsored by a Scheduled Commercial Bank (commonly called a National Commercial Bank).

The capital is shared in the ratio Central Government 50%, Sponsor Bank 35%, State Government 15%. The sponsor bank provides managerial, financial, and training support. The RBI only regulates RRBs and NABARD supervises them, so neither the RBI, foreign banks, nor co-operative banks sponsor them. Hence the correct answer is National Commercial Banks.

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