- Regional Rural Banks are jointly owned by the Government of India, the concerned State Government and Sponsor Banks with the issued capital shared in the proportion of 50%, 15% and 35% respectively.
- RRBs were set up with the objective to provide credit and other facilities, especially to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs in rural areas for development of agriculture, trade, commerce, industry and other productive activities.
- NABARD is responsible for regulating and supervising the functions of RRBs. The regulatory powers continue to be vested with the Reserve Bank of India.
- The RRBs are required to provide 75% of their outstanding advances as priority sector lending with primary focus on agricultural credit, including small and marginal farmers, as well as micro entrepreneurs and rural artisans.
Why in News?
- Union Finance MinisterNirmala Sitharaman chaired a review meeting of Regional Rural Banks of Northern Region in New Delhi.