BANKING AFFAIRS

Detailed explanation-1: -Regional Rural Banks (RRBs) are government owned scheduled commercial banks of India that operate at regional level in different states of India. These banks are under the ownership of Ministry of Finance, Government of India.

Detailed explanation-2: -Like other public sector Banks RRBs are established by Govt. of. India and are scheduled & notified by Reserve Bank of India. RRBs are jointly owned by Government of India(GOI), Sponsor Bank and the concerned State Government and with share proportion 50%, 35% & 15% respectively.

Detailed explanation-3: -Thus, we can say that RRBs are smaller banks that work only in few of the districts, providing loans to agriculture and priority sector. They lack professionalism of nationalised banks and get their top management from the sponsor bank (nationalised banks).

Detailed explanation-4: -There are 12 public sector banks in India. These are Union Bank of India, UCO Bank, State Bank of India, Punjab National Bank, Punjab and Sind Bank, Indian Overseas Bank, Indian Bank, Central Bank of India, Canara Bank, Bank of Maharashtra, Bank of India, and Bank of Baroda.

Detailed explanation-5: -1. Genesis. Section 35(6) of the Banking Regulation Act, 1949 empowers NABARD to conduct inspection of State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs) and Regional Rural Banks (RRBs) (collectively called NABARD’s Supervised Entities).