abhishreshthaa
Abhijeet S
These banks were first set up in 1975 specifically to give direct loans and advances to small and marginal farmers, agricultural labourers, rural artisans and other of small means.
The loans are given for productive purposes. There were 196 RRBs which have been lending around Rs. 3600 crores annually by way of loans to rural people. Over 90 percent of the loans of RPBs are given to the weaker sections in rural areas.
The regional banks, though basically scheduled commercial banks, differ from the latter in certain respects:
The area of regional rural banks is limited to a specified region comprising one or more districts of a State.
The regional rural banks grant direct loans and advances only to small and marginal farmers, rural artisans and agricultural labourers and other of small means for productive purposes.
The lending rates of the regional rural banks should not be higer than the prevailing lending rates of co-operatives societies in any particular State.
The sponsoring banks and the Reserve Bank of India provide many subsidies and concessions to RRBs to enable the latter to function effectively
The loans are given for productive purposes. There were 196 RRBs which have been lending around Rs. 3600 crores annually by way of loans to rural people. Over 90 percent of the loans of RPBs are given to the weaker sections in rural areas.
The regional banks, though basically scheduled commercial banks, differ from the latter in certain respects:
The area of regional rural banks is limited to a specified region comprising one or more districts of a State.
The regional rural banks grant direct loans and advances only to small and marginal farmers, rural artisans and agricultural labourers and other of small means for productive purposes.
The lending rates of the regional rural banks should not be higer than the prevailing lending rates of co-operatives societies in any particular State.
The sponsoring banks and the Reserve Bank of India provide many subsidies and concessions to RRBs to enable the latter to function effectively