GuruRaJ KhanvilkaRMBA 2nd year 1540111

Regional Rural Bank Regional Rural Banks (also RRBs) are local

level banking organizations operating in different States of India. They have been created with a view to serve primarily the rural areas of India with basic banking and financial services.

Regional Rural Banks were established under the provisions of an Ordinance passed on September 1975 and the RRB Act. 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors .

Organization Structure The following is the decision making hierarchy of

officials in a Regional Rural Bank. Board of Directors Chairman & Managing Director General Manager Chief Manager/Regional Managers Senior Manager Manager Officer / Assist

Names of some RRB Allahabad UP Gramen Bank Andhra Pradesh Grameena Vikas Bank Andhra Pragathi Grameena Bank Gramin Bank of Aryavart Bangiya Gramen Vikash Bank Langpi Dehangi Rural Bank Odisha Gramya Bank Pandyan Grama Bank Kerala Gramin Bank

Functions of RRB RRBs grant loans and advances to small farmers and

agricultural laborers so that they can start their own farming activities including purchase of land, seeds and manure.

RRBs provides banking services at the doorsteps of the rural people.

The RRBs charges a lower rate of Interest and thus they reduce the cost of credit in the rural areas.

RRBs provide loan and other financial assistance to entrepreneurs in villages, sub-urban areas and small towns .So that they become able to enlarge their business.

Loans to artisans to encourage them for the production of artistic and related goods.

Encourage the saving habit among the rural and semi-urban population.

The objectives of RRBs can be summarized as follows:

To provide cheap and liberal credit facilities to small and marginal farmers, agri culture laborers, artisans, small entrepreneurs and other weaker sections.

To save the rural poor from the moneylenders.

To cultivate the banking habits among the rural people and mobilize savings

for the economic development of rural areas.

To increase employment opportunities by encouraging trade and commerce in rural areas.

To encourage entrepreneurship in rural areas.

To cater to the needs of the backward areas which are not covered by the other efforts of the Government?

Few details of RRB Total number of RRBs: 82 Number of Branches: 15475 Deposits: Rs145035 crore Loans Outstanding: Rs 79157 crore Number of Loss-making Banks: 3 Number of profit making banks: 79 Operating Profits: Rs 2913 crore Net Profit: Rs 1884 crore Districts Covered: 619

Report on Trend and progress of banking in India,2009-10