RRBs & Co-operative — Set 1
Banking · RRB और सहकारी बैंक · Questions 1–10 of 60
In which year were Regional Rural Banks (RRBs) first established in India?
Correct Answer: A. 1975
RRBs were first established on October 2, 1975, through an ordinance. This initiative was based on the recommendations of the Narasimham Working Group. The primary objective was to provide institutional credit to the rural poor.
Which of the following acts governs the functioning of Regional Rural Banks?
Correct Answer: C. RRB Act 1976
The RRB Act of 1976 provides the legal framework for the organization and operation of these banks. It was enacted to replace the 1975 ordinance that originally created them. The act defines the shareholding pattern and area of operations.
What is the share of the Central Government in the equity of a Regional Rural Bank?
Correct Answer: B. 50%
The Central Government holds a 50% stake in the equity of every RRB. The remaining equity is split between the Sponsor Bank and the State Government. This structure ensures coordinated development at both national and local levels.
The shareholding of the Sponsor Bank in a Regional Rural Bank is fixed at?
Correct Answer: D. 35%
The Sponsor Bank contributes 35% to the total equity of a Regional Rural Bank. It provides technical and managerial assistance during the initial years. A single public sector bank usually sponsors several RRBs.
The shareholding of the State Government in the equity of an RRB is?
Correct Answer: A. 15%
The concerned State Government holds a 15% share in the Regional Rural Bank's capital. This ensures that the bank aligns its activities with the state's rural development priorities. The capital structure is unique to the RRB model.
Who was the chairman of the Working Group that recommended the creation of RRBs?
Correct Answer: B. M. Narasimham
The working group was chaired by M. Narasimham in 1975. They suggested a new set of institutions to combine local feel with professional banking. This led to the formation of the first five RRBs in the country.
Which of the following was the first Regional Rural Bank to be set up in India?
Correct Answer: A. Prathama Bank
Prathama Bank, located in Moradabad (Uttar Pradesh), was the first RRB established. It was sponsored by Syndicate Bank. It started operations on Gandhi Jayanti in 1975.
Which institution is responsible for the statutory inspection and supervision of RRBs?
Correct Answer: B. NABARD
NABARD is the apex regulatory body for the supervision of Regional Rural Banks. It conducts inspections to ensure financial health and compliance with rural lending norms. NABARD was established in 1982 to take over these functions from the RBI.
What is the Priority Sector Lending (PSL) target for Regional Rural Banks?
Correct Answer: B. 75%
RRBs are required to allocate 75% of their total credit to priority sectors. This is higher than the 40% target set for domestic commercial banks. It reflects their specialized mandate of serving rural and weaker sections.
Which of the following smaller states is known to NOT have any Regional Rural Bank (RRB) operating within its territory?
Correct Answer: B. Goa
Goa does not have any Regional Rural Bank (RRB) operating within its territory. Being a small and relatively urbanised state with high banking penetration, Goa has been served entirely by commercial and cooperative banks. Sikkim is another state without RRBs. States like Manipur, Meghalaya, and Tripura have RRBs that serve their rural and semi-urban populations. The number of RRBs across India has declined significantly over the years due to consolidation and merger programmes initiated by the government.