Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
71 views
in GK by (72.6k points)
closed by

Consider the following statements about Regional Rural Banks.

1. RRBs are financial institutions that ensure adequate credit for agriculture and other rural sectors.

2. It was set up on the recommendations of the Narasimham Working Group (1975)

3. “Prathama Grameen Bank” was the first RRB.

Which of the above statements is/are correct?


1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

1 Answer

0 votes
by (121k points)
selected by
 
Best answer
Correct Answer - Option 4 : 1, 2 and 3

The correct answer is 1, 2 and 3.

Regional Rural Banks (RRBs):

  • They are financial institutions that ensure adequate credit for agriculture and other rural sectors. Hence, Statement 1 is correct.
  • They were set up on the recommendations of the Narasimham Working Group (1975). Hence, Statement 2 is correct.
  • RRBs were granted legal provisions under the Regional Rural Banks Act, 1976.
  • The first Regional Rural Bank “Prathama Grameen Bank” was set up on 2nd October 1975. Hence, Statement 3 is correct.
  • The equity of a regional rural bank is held by the Central Government, concerned State Government and the Sponsor Bank in the proportion of 50:15:35.
  • The RRBs have combined characteristics of a cooperative and a commercial bank.
  • It operates within the local limits as notified by the Government.
  • The main objectives of RRBs are
    • To provide credit and other facilities to the small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs in rural areas.
    • To check the outflow of rural deposits to urban areas.
    • To reduce regional imbalances.
    • To increase rural employment generation.
  • They are required to provide 75% of their total credit as priority sector lending.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...