The government of india promulgated the regional rural banks ordinance on 26 th september 1975, which was later replaced by the regional rural bank act 1976. Regional rural banks came into existence on gandhi jayanti in 1975 with the formation of a prathama grameen bank. The total number of regional rural banks functioning in the country as at the end of june1999 was 196 covering 451 districts spread over 23 states with the network of14,467 branches these banks have been established by the government of india in terms of the provisions of regional rural banks act, 1976. Regional rural banks rrbs were established in 2nd october,1975 under the provisions of the ordinance promulgated on the 26th september 1975 and followed by regional rural banks act, 1976 with the aim of developing rural economy in all areas like agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and. Regional rural banks were established under the provisions of an ordinance promulgated on the 26th september 1975 and the rrb act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The number of branches the sbi regional rural banks is more than 2000. Regional rural banks act, 1976 bare acts law library. The said act was amended from time to time and the last amendment was in the year 2005. Regional rural banks have been in existence for around three decades in the indian. Regional rural bank designed to develop the rural areas of india. Rrbs were configured as hybrid micro banking institutions, combining the local orientation and small scale lending culture of the cooperatives and the business culture of commercial banks. The regional rural banks amendment bill, 20 a bill further to amend the regional rural banks act, 1976. In this act, unless the context otherwise requires, a board, in relation. The development process of rrbs started with the promulgation of an ordinance promulgated on 26th september 1975 which later on was replaced with regional rural bank act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors.
There are 30 regional rural banks in india, under the state bank of india and it is spread in states across india. Rrb common written exam cwe is one of the many bank exams conducted by the institute of banking personnel selection ibps. Mar 08, 2016 moreover, the amending act is also by amending the section 9 of the original act, which was providing for the composition of the board of directors of regional rural bank to chairman and directors who should be appointed through the central govt. This bill amends regional rural banks act, 1976 and aims to strengthen the regional rural banks rrbs and. The development process of rrbs started with the promulgation of an ordinance promulgated on 26th september 1975 which later on was replaced with regional rural bank act, 1976 with an objective to ensure. The regional rural banks act, 1976legislative department. The regional banks that will be participating in ibps rrb recruitment 2019 has been mentioned below. The views expressed here are of the author and not necessarily of the institution to which he belongs.
A regional rural bank is popularly known as reading detective beginning pdf gramin bank. Annual reports balance sheets of regional rural banks,2014. Any rural bank organized under this act may, pursuant to regulations promulgated for the purpose by the monetary board, be required to contribute to the central bank an annual fee to help defray the cost of maintaining the appropriate supervising department within the central bank in an amount to be determined by the monetary board but in no. Regional rural banksappointment of officers and employees. Although they try and open some branches in the rural areas as. It is conducted for recruitment to regional rural banks rrbs or gramin banks. Apr 16, 2016 regional rural banks rrbs were set up as governmentsponsored, regional based rural lending institutions under the regional rural banks act, 1976.
Pdf the growth of regional rural banks rrbs during the. The regional rural banks amendment bill, 2014 prsindia. Notwithstanding anything contained in this act, if the central government, after consultation with the national bank, the concerned state government and the sponsor bank, is of the opinion that it is necessary in the public interest or in the interest of the development of the area served by any regional rural bank or in the interest of the regional rural banks themselves, that two or more. The regional rural banks act, 1976 mainly provides for the incorporation, regulation and winding up of regional rural banks rrbs. Accordingly, relevant provisions of the regional rural bank act, 1976 stand amended.
There are 56 regional rural banks in india and amongst those, only 45 rrbs will participated in 2019. Apr 28, 2015 a bill to amend the regional rural banks act was passed by parliament today, with government saying it was necessary to empower such financial institutions which are the jewel in the crown of. The performance of regional rural banks rrbs in india. Full text containing the act, regional rural banks act, 1976, with all the sections, schedules, short title, enactment date, and footnotes. Regional rural bank department of financial services. To provide them constitutional background, a separate act was passed. As a result, five regional rural banks were set up on 2 october 1975,gandhi jayanti. Aug 20, 2019 ibps rrb exam is designed only for those skilled young graduates, who are seeking the employment opportunities in indian regional rural banks. As per this act, the regional rural banks were to be set up with a view to developing the rural economy by providing credit and other facilities particularly to small and marginal farmers, agricultural labourers, artisans.
Mar 10, 2015 regional rural banks came into existence on gandhi jayanti in 1975 with the formation of a prathama grameen bank. A study on merger impacts of regional rural banks in india. Regional rural banks rrbs were set up as statesponsored, regionally based and rural oriented institutions under the regional rural banks act. Regional rural banks are local level banking organizations operating in different. Regional rural banks rrb were established under the provisions of an ordinance promulgated on the 26th september 1975 and the rrb act, 1976 with an objective to ensure. These regional rural banks rrbs have been receiving a high degree of importance and attention in the rural credit system. Be it enacted by parliament in the sixtyfourth year of the republic of india as follows. In view of growing business of the regional rural banks and expansion of their role. Mar 03, 2020 as per the rbis annual report of 201718, the currency management infrastructure consists of a network of 19 issue offices of the reserve bank, 3,975 currency chest and 3,654 small coin depots of commercial, cooperative and regional rural banks spread across the country. The rural banks had the legislative backing of the regional rural banks act 1976. Organisation, functions and management of regional rural. In 1969 after nationalization of banks in india the banking system started to boost. Replaced with regional rural bank act, 1976 with an objective to ensure. The bill seeks to amend the regional rural banks act, 1976.
Moreover, the amending act is also by amending the section 9 of the original act, which was providing for the composition of the board of directors of regional rural bank to chairman and directors who should be appointed through the central govt. Regional rural bank department of financial services ministry of. Regional rural banksappointment of officers and employees amendment rules, 2017downloadable pdf. Regional rural banks agricultural finance indiaagronet. The regional rural banks rrbs aimed at providing credit and other facilities to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in rural areas. The rrb act, 1986, empowers the central government to establish in a state or union territory one or more rrbs when any sponsor bank makes such. All regional rural banks dear sir the regional rural banks amendment act. The performance of regional rural banks rrbs reserve bank. Structure and functions of the regional rural banks. Apr 28, 2015 parliament has passed regional rural banks amendment bill, 2014. The regional rural banks were setup on the basis of narsimham committee report 1975, by the legilations of the regional rural banks act of 1976. Regional rural banks rrbs are financial institutions which ensure adequate credit for agriculture and other rural sectors.
Regional rural banks act was passed in 1976 which aimed to set up rrbs to provide sufficient banking and credit facility for agriculture and other rural sectors. For the purpose of the incometax act, 196143 of 1961, or any other enactment for the time being in force relating to any tax on income, profits or. Rural banks act, 1976 21 of 1976 hereinafter referred to as the. Three up regional rural banks to be amalgamated 28 nov, 2019, 03.
A regional rural bank is popularly known as gramin bank. The regional rural banks act, 1976 provides for the incorporation, regulation and winding up of regional rural banks rrbs with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities. The regional rural banks were owned by the central government, the state government and the sponsor bank who held shares in the ratios as follows central government 50%, state. Banks not under this schedule are called nonscheduled banks. In this act, unless the context otherwise requires, a board in relation to a regional rural bank, means the board of directors of that regional rural bank. Parliament passes amendment to regional rural banks bill. This bill amends regional rural banks act, 1976 and aims to strengthen the regional rural banks rrbs and deepen their financial inclusion. They have been created with a view of serving primarily the rural areas of india with basic banking and fina. Regional rural banks rrbs were set up as governmentsponsored, regional based rural lending institutions under the regional rural banks act, 1976. A study on indian rural banking industryissues and challenges. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Aug 24, 20 the total number of regional rural banks functioning in the country as at the end of june1999 was 196 covering 451 districts spread over 23 states with the network of14,467 branches these banks have been established by the government of india in terms of the provisions of regional rural banks act, 1976. The scope of study after the research would be that the regional rural banks which adopted the.
The role and responcibilities of regional rural banks for. The regional rural banks act, 1976 provides for the incorporation, regulation and windingup of regional rural banks. The primary role of the rrb is to be the banker of the backward and rural areas of our country. Rural banks in those days mainly focussed upon the agro sector.
Regional rural banks were established under the provisions of an ordinance passed in september 1975 and the regional rural bank act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors. The regional rural banks amendment act, 2015 lawyers law. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Establishment and incorporation of national bank for agriculture and rural development. Three up regional rural banks to be amalgamated 28 nov, 2019, 08.
As per the rbis annual report of 201718, the currency management infrastructure consists of a network of 19 issue offices of the reserve bank, 3,975 currency chest and 3,654 small coin depots of commercial, cooperative and regional rural banks spread across the country. Regional rural banks were set up on the basis of the recommendations of the narasimham working group 1975, and after the legislations of the regional rural banks act, 1976. Parliament has passed regional rural banks amendment bill, 2014. An act to provide for the incorporation, regulation and winding up of regional rural banks with a view to developing the rural economy by providing, for the purpose of development of. Mar 24, 2020 regional rural banks rrbs are the indian scheduled commercial government banks operating at regional level in different states of india. The preamble to the act states the objective to develop rural economy by providing credit and facilities for the development of agriculture, trade, commerce, industry and other productive. Regional rural banks act 1976 nabard national bank for. Regional rural bank, premerger, postmerger, owned funds, borrowed funds. The regional rural banks amendment bill, 2014 was introduced by the minister of finance, mr. Regional rural bank has takes part in the development of our indian economy.
Subsequently, rrbs were set up through the promulgation of the rrbs act, 1976. An act to provide for the incorporation, regulation and winding up of regional rural banks with a view to developing. In this act, unless the context otherwise requires, a board, in relation to a regional rural bank, means the board of. Jan 12, 2017 the primary role of the rrb is to be the banker of the backward and rural areas of our country. Regional rural banks were established under the provisions of an ordinance promulgated on the 26th september 1975 and the rrb act, 1975 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. Regional rural banks rrbs are the indian scheduled commercial government banks operating at regional level in different states of india. An act further to amend the regional rural banks act, 1976. The regional rural banks act 1976 provide for incorporation, regulation and winding up regional rural banks with a view to developing the rural economy by providing for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourers. The authors would also like to extend special thanks to mr. Regional rural banks rrbs are indian scheduled commercial banks government banks. Till date in rural banking in india, there are 14,475 rural banks in the country of which 2126 91% are located in remote rural areas. Research officer in the department of economic analysis and policy, reserve bank of india and presently working from the patna office of the bank.
As you are aware, the rrb amendment act, 2015 has been notified in the gazette of india on 12 may 2015. The number of branches the sbi regional rural banks is. Rrbregional rural bank is a commercial bank which is owned by our indian government. Rbi in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 426a of the said act. How it applies to banking sector, more particularly to regional rural banks rrbs.
Considering the gross absence of banking facilities in the rural areas of the country, the reserve bank of india in consultation with the central government, state governments and some major nationalized sponsored banks had set up some regional rural banks in the late. It was first passed in lok sabha on december 22, 2014 and later in rajya sabha on april 28, 2015. Thereafter, the first regional rural bank was setup in 1975 itself by the name prathama grameen bank. Scheduled banks in india refer to those banks which have been included in the second schedule of reserve bank of india act, 1934. The board may, after consultation with the 7 national bank, the concerned state government and the sponsor bank and with the prior approval of the central government, from time to time, increase the issued capital of the regional rural bank. Regional rural banks vs cooperative banks bankexamstoday. List of regional rural banks in india ibps participating.
The big nationalized banks and the private banks are mostly located in cities and towns. This act allowed the government to set up banks from time to time wherever it considered necessary. Regional rural banksappointment of officers and employees amendment rules, 2017. All the regional rural banks are authorized to carry on to transact the business of a banking as defined in the banking regulation act 1949.
One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. National bank for agriculture and rural development act, 1981. Parliament passes regional rural banks amendment bill, 2014. Ibps rrb exam is designed only for those skilled young graduates, who are seeking the employment opportunities in indian regional rural banks. The state bank of india is one of the major commercial banks having regional rural banks. The government passed the regional rural banks act in 1 976. Regional rural banks were established under the provisions of an ordinance passed on 26 september 1975 and the rrb act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors. An act to provide for the incorporation, regulation and winding up of regional rural banks with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce. A bill to amend the regional rural banks act was passed by parliament today, with government saying it was necessary to empower such financial. The authorized capital of regional rural banks is rs.