Regional Rural Bank
Encyclopedia
The Government of India
set up Regional Rural Banks (RRBs) on October 2, 1975.
Initially, five RRBs were set up on October 2, 1975 which were sponsored by Syndicate Bank
, State Bank of India
, Punjab National Bank
, United Commercial Bank
and United Bank of India
. Capital share being 50% by the central government, 15% by the state government and 35% by the scheduled bank.
Earlier Reserve Bank of India
had laid down ceilings on the rate of interest to be charged by these RRBs. However from August 1996 the RRBs have been granted freedom to fix rates of interest, which is usually in the range of 14-18% for advances.
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
set up Regional Rural Banks (RRBs) on October 2, 1975.
Initially, five RRBs were set up on October 2, 1975 which were sponsored by Syndicate Bank
Syndicate Bank
Syndicate Bank Ltd. is one of the oldest and major commercial banks of India. At the time of its establishment, the bank was known as Canara Industrial and Banking Syndicate Limited. The bank, along with 13 major commercial banks of India, was nationalized on 19 July 1969, by the Government of...
, State Bank of India
State Bank of India
The State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest...
, Punjab National Bank
Punjab National Bank
Punjab National Bank , was founded in 1894 and is currently the second largest state-owned commercial bank in India ahead of Bank of Baroda with about 5000 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by the Bankers...
, United Commercial Bank
United Commercial Bank
United Commercial Bank was an overseas Chinese bank in the United States, based in San Francisco, CA. It was a subsidiary of UCBH Holdings. Founded in 1974 as United Federal Savings and Loan Association, it changed its name to United Savings Bank, and finally United Commercial Bank in 1998...
and United Bank of India
United Bank of India
United Bank of India is a state-owned financial services company headquartered in Kolkata, India. Presently the bank has a three-tier organizational setup consisting of its Head office in Kolkata, 31 Regional offices and 1600 branches spread all over India. However, its major presence is in...
. Capital share being 50% by the central government, 15% by the state government and 35% by the scheduled bank.
Earlier Reserve Bank of India
Reserve Bank of India
The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
had laid down ceilings on the rate of interest to be charged by these RRBs. However from August 1996 the RRBs have been granted freedom to fix rates of interest, which is usually in the range of 14-18% for advances.