The other Regional Rural Banks in India are -Haryana State Cooperative Apex Bank Limited . affected economically by COVID- 19. Carrying out government operations like disbursement of wages of MGNREGA workers, distribution of pensions etc… The Chairman Mizoram Rural Bank B-5, Babu Tilla, Zarkawt Aizawl - 796 007 Regional Rural banks (RRB) were created to provide the sufficient institutional credit for agriculture to the rural areas of a state. The authorised capital of an RRB is fixed at Rs. Of the issued capital, 50 per cent is to be subscribed by the Central Government, 15 per cent by the concerned State Government and the rest 35 per cent by the sponsoring bank. It can have its branches at any place as notified by the government. The Full Form of RRB stands for Regional Rural Bank. Prachi is a Biotechnology student based in Mumbai. These six banks are Oriental Bank of Commerce (OBC), Syndicate Bank, United Bank of India, Corporation Bank, Andhra Bank and Allahabad Bank. In this article, aspirants will get information on the banking system in India, its function, and the type of banks in India. CHAPTER VA AMALGAMATION OF REGIONAL RURAL BANKS 23A. • The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs) • Meeting the needs of rural areas • Regional Rural Banks Act, 1976 • Currently, there are 82 RRBs in India 21. The Regional Rural Banks (RRBs) aimed at providing credit and other facilities to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in rural areas. Accept Deposits. There were five commercial banks, viz. Structure and Functions of the Regional Rural Banks! Essential Features/functions of the Bank . 1) Reserve Bank of India: The RBI Act 1934 and the Banking Regulation Act 1949 are two principal regulating statutes for commercial banks in India. 100 cr. Role of Regional Rural Banking for Rural Development: Regional Rural Banks were established with the following responsibilities in mind: 1) Taking the banking services to the doorstep of rural masses, particularly in hitherto unbanked rural areas. It basically performs three kinds of roles, i.e. Role of Banks In Agriculture & Rural Development I n the last few years, the In-dian economy has emerged as one of the fastest grow- ing economies in the world. EXIM Bank; Functions of NABARD. Content Guidelines 2. Regional Rural Banks Act, 1976; Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980; National Bank for Agriculture and Rural Development Act, 1981; National Housing Bank Act, 1987; Recovery of Debts Due to Banks and Financial Institutions Act, 1993; Competition Act, 2002; Indian Coinage Act, 2011: Governs currency and coins The main function of the central bank is to act as the Government’s Bank and guide and regulate the other banking institutions in the country. 2) Identify the financial need especially in rural areas. It has reserved Rs 1340 crore and will release of Rs 670 crore out of this fund for the same. TOS 7. The important functions of Regional Rural Banks are discussed below. The merging of two or more banks together is known as amalgamation. They are Indian Government banks, being commercial banks, which operate at a regional level in India’s various states. The authorised capital of each bank is Rs. In 2009, a committee was formed under the chairmanship of K. C. Chakrabarty, to analyse the situation of RRBs. A bank allows a person with excess money (Saver) to deposit his money in the bank and earns an interest rate. During the tenure of Indira Gandhi’s government with a view to include rural areas into economic mainstream since that time about 70% of the Indian … Every bank was to be sponsored by a “Public Sector Bank”, however, they were planned as the self sustaining credit institution which were able to refinance their internal resources in themselves and were excepted from the statutory pre-emptions. Due to defaulting and non- repayment of loans, banks often run into debts. 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