The function of a Bank is to collect deposits from the public and lend those deposits for the development of Agriculture, Industry, Trade and Commerce. Bank pays interest at lower rates to the depositors and receives interests on loans and advances from them at higher rates.
What do you mean by regional rural banks discuss their functions?
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. The RRB functions within the local limits as specified by government notification.
What are the main objectives of regional rural banks?
The main objective of RRB is to provide credit and other facilities particularly to small and marginal farmers, agricultural laborers, artisian and small entrepreneurs and develop agriculture, trade, commerce, industry, and other productive activities in the rural areas.
What are the functions of regional rural banks?
Structure and Functions of the Regional Rural Banks! 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.
What are the functions of a RRB bank?
In brief RRBs do all such functions as are done by domestic banks like accepting deposits from public, providing credit, remittance services etc. They can also invest in Government securities and deposit schemes of Banks and Financial Institutions.
How are regional rural banks ( RRBs ) covered under DICGC?
Regional Rural Banks may also seek refinance facilities provided by NABARD for the loans sanctioned and disbursed by them. All the RRBs are covered under DICGC scheme and they are also required to observe the RBI stipulations for Cash Reserve Ratio and Statutory Liquidity Ratio.
Why are RRBs important to the rural population in India?
There were established with an objective of providing easily accessible banking and credit services to the rural population and mobilising financial resources from the urban areas to rural districts of India. Hence, RRBs form a vital component of the financial service sector in India.
