BANKING AFFAIRS

Detailed explanation-1: -As a result, five RRBs were set up on 2 October 1975 on the recommendations of the Narsimhan Committee on Rural Credit, during the tenure of Indira Gandhi’s government. The purpose was to include rural areas into the economic mainstream since around 70% of the Indian population was rural.

Detailed explanation-2: -Regional Rural banks (RRBs) in India were established by Government of India, under provisions of RRBs Act 1976, enacted by the Indian Parliament.

Detailed explanation-3: -First Regional Rural Bank was established on 2 October 1975. The Prathama Bank of Moradabad, Uttar Pradesh was the first RRB. Currently, there are 43 RRBs in India.

Detailed explanation-4: -Under the Ordinance of 1975, five regional rural banks were set up in the first phase. The first, Prathma Bank, was set up in Moradabad (U.P.) on 2nd October 1975. It was sponsored by Syndicate Bank. Four other banks were set up in Gorakhpur (U.P.), Malda (West Bengal), Bhiwani (Haryana), and Jaipur (Rajasthan).