RRBs & Co-operative — Set 5
Banking · RRB और सहकारी बैंक · Questions 41–50 of 60
Regional Rural Banks (RRBs) are also known as?
Correct Answer: B. Gramin Banks
RRBs are popularly referred to as 'Gramin Banks' in India. This name highlights their focus on rural areas and agricultural development. They were created to reach the 'unbanked' rural population.
Which of the following is the 'Sponsor Bank's' role in an RRB?
Correct Answer: C. Providing managerial and financial assistance
Sponsor banks are mandated to provide initial managerial support and training to RRB staff. They contribute 35% of the capital. This partnership helps RRBs adopt professional banking practices.
The principle of 'No Profit, No Loss' is primarily followed by?
Correct Answer: D. Co-operative Banks
Co-operative banks are service-oriented rather than profit-driven. They aim to provide credit at affordable rates to their members. Any surplus generated is typically reinvested or distributed among members.
In which city is the headquarters of NABARD located?
Correct Answer: A. Mumbai
NABARD is headquartered in Mumbai, the financial capital of India. It was established in 1982 to promote rural prosperity. It is the main supervising authority for RRBs and Co-operative banks.
State Co-operative Banks (StCBs) operate at which level?
Correct Answer: C. State level
StCBs are at the top of the three-tier co-operative credit structure in a state. They mobilize resources and act as a balancing center for DCCBs. They also interact directly with NABARD.
Which committee recommended the setting up of NABARD?
Correct Answer: D. Sivaraman Committee
The B. Sivaraman Committee recommended the establishment of NABARD in 1979. It was formed to give undivided attention to rural credit. It acts as an apex institution for rural development financing.
What is the primary target group for Regional Rural Banks?
Correct Answer: A. Small and marginal farmers
RRBs were specifically designed to serve the needs of small farmers, rural artisans, and agricultural laborers. This focus helps in reducing rural indebtedness. They provide small-ticket loans suited to the rural economy.
Which of the following is NOT part of the three-tier co-operative structure?
Correct Answer: C. EXIM Bank
EXIM Bank is a specialized institution for export-import trade. StCB, DCCB, and PACS form the short-term co-operative credit structure. This structure helps in recycling funds within the rural sector.
How many members of the working group on RRBs were there in 1975?
Correct Answer: D. None of these
The Narasimham working group was a full panel established by the government. The group submitted its report within a month of its formation. It resulted in the immediate establishment of five RRBs in 1975.
Urban Co-operative Banks are also regulated by?
Correct Answer: D. RBI
The RBI regulates the banking operations of Urban Co-operative Banks. This includes aspects like capital adequacy and asset classification. Administrative matters are handled by the Registrar of Co-operative Societies.