RRB stands for Regional Rural Bank, which refers to a type of financial institution that operates at the regional and rural level in India. RRBs were established under the Regional Rural Banks Act of 1976 with the objective of providing credit and other financial services to the rural population and promoting agricultural and rural development.
These banks are jointly owned by the Government of India, the concerned State Government, and the sponsoring commercial bank. The share capital of RRBs is divided among the three parties, ensuring cooperative efforts for the upliftment of the rural economy.
RRBs mainly focus on meeting the credit needs of small and marginal farmers, rural artisans, and entrepreneurs engaged in agricultural and allied activities. They offer various types of financial services including loans for agricultural purposes, crop loans, agricultural machinery loans, housing loans, educational loans, and microfinance services to women and self-help groups in rural areas.
With their local presence and dedicated focus on rural areas, RRBs play a crucial role in providing financial inclusion and empowering the rural population. They facilitate rural development by channeling credit to those who need it most, fostering entrepreneurship, and promoting socio-economic advancement in rural communities.
In summary, an RRB is a specialized financial institution that functions at the regional and rural level in India to provide credit and other financial services for agricultural and rural development.
