Regional Rural Banks
Some Facts about RRBs:
- RRBs were set up on the recommendations of the Narasimham Working Group.
- The first RRB to be set up was the Prathama Bank, sponsored by Syndicate Bank on October 2, 1975 in Uttar Pradesh. The head office is at Moradabad, UP.
- At that time, Mrs Indira Gandhi was the Prime Minister of India.
- The regulatory authority of these RRBs is NABARD.
- All the RRBs are on Core Banking platform like other commercial banks.
- The area of operation of the RRBs is limited to few districts in a State.
- The percentage shares of the Government of India, the concerned State Government and the bank, which had sponsored the RRB is in the proportion of 50%, 15% and 35%.
- Sponsor bank can be any Nationalized Commercial Bank.
- The sources of funds of RRBs comprise of owned fund, deposits, borrowings from NABARD, Sponsor Banks and other sources including SIDBI and National Housing Bank.
- RBI has allowed the RRBs to maintain a lower level of SLR than commercial banks.
- The Chakrabarty Committee reviewed the financial position of all RRBs in 2010 and recommended for recapitalization.
- Under the Dr Vyas Committee Recommendations, amalgamation of RRBs took place in 2013.
- As a result of amalgamation, number of the RRBs reduced from 196 to 64 as on 31 March 2013.
- All states in India have RRBs, except Sikkim and Goa.