Volume : IX, Issue : V, May - 2019

Problems and Challenges of Regional Rural Banking sector in India

Thokala. Devi, Dr. Delli Kumar Koti

Abstract :

The first recommendation for the establishment of regional rural banks was made by Banking Commission in 1972. As the result of this recommendation a working group headed by Mr.M.Narsimham Rao, RRB’s came into existence in 26th September, 1975 and RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The Government of India, the concerned State Government and the bank, which had sponsored the RRB contributed to the share capital of RRBs in the proportion of 50%, 15% and 35%, respectively. The area of operation of the RRBs is limited to notify few districts in a State. The main goal of establishing Regional Rural Banks in India is to provide credit to the rural people who are not economically strong enough, especially the small and marginal farmers, artisans, agricultural labours and even small entrepreneurs. The present study is a modest attempt to make an appraisal of the rural credit structure and the role played by RRBs in the development of rural economy. The objective of this paper is to analyze the rural credit and the role played by the RRBs in the priority and non–priority sector landings. The study is diagnostic and exploratory in nature and makes use of secondary data. The study finds and concludes that RRBs in India has significantly improved rural economy.

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

PROBLEMS AND CHALLENGES OF REGIONAL RURAL BANKING SECTOR IN INDIA, Thokala. Devi, Dr. Delli kumar Koti INDIAN JOURNAL OF APPLIED RESEARCH : Volume-9 | Issue-5 | May-2019

Number of Downloads : 1735

References :