The total number of regional rural banks functioning in the country as at the end of june1999 was 196 covering 451 districts spread over 23 states with the network of14,467 branches these banks have been established by the government of india in terms of the provisions of regional rural banks act, 1976. Narsimham rao, rrbs came into existence in 26th september, 1975 and rrb act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The role and responcibilities of regional rural banks for. An act to provide for the incorporation, regulation and winding up of regional rural banks with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce. The regional rural banks act 1976 indian bare acts at, a website for indian laws and bareacts, legal advice and law. Reforms and mergers introduced by the government of india in consultation with reserve bank of india rbi. The original act of 1976 was enacted to make provisions for the incorporation, regulations and winding up of the regional rural banks with the aim and object to develop the rural economy by offering the credits and other facilities for the purposes of the development of agriculture, trade, commerce, industry and other productive activities in. The regional rural banks act, 1976legislative department. Regional rural banksappointment of officers and employees.
Considering the gross absence of banking facilities in the rural areas of the country, the reserve bank of india in consultation with the central government, state governments and some major nationalized sponsored banks had set up some regional rural banks in the late. Performance evaluation of regional rural banks with. Regional rural banks rrbs were set up as governmentsponsored, regional based rural lending institutions under the regional rural banks act, 1976. This paper seeks to examine the performance of the rural banks in ghana by using financial ratios as the main tool or technique to measure the performance of the rural banks. Regional rural banks rrbs were established in 2nd october,1975 under the provisions of the ordinance promulgated on the 26th september 1975 and followed by regional rural banks act, 1976 with the aim of developing rural economy in all areas like agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and. Amuthan excel business school, salem banks play an important role in mobilization and allocation of resources in our country.
Regional rural banks in eastern uttar pradesh the government of india accepting the recommendations made by the working group, promulgated an ordinance on september 26, 1975, for setting up regional rural banks. The regional rural banks amendment act, 2015 lawyers law. The regional rural banks act, 1976 was enacted on the 9th february, 1976 and new type. Regional rural banks were set up on the basis of the recommendations of the narasimham working group 1975, and after the legislations of the regional rural banks act, 1976. The regional rural banks were setup on the basis of narsimham committee report 1975, by the legilations of the regional rural banks act of 1976. In this act, unless the context otherwise requires. They have been created with a view of serving primarily the rural areas of india with basic banking and fina. The regional rural banks rrbs were established in 1976 under regional rural banks act, 1976. The term of the non official directors appointed by the central government is proposed to be fixed not exceeding two years. As the result of this recommendation a working group headed by mr. Aug 24, 20 the total number of regional rural banks functioning in the country as at the end of june1999 was 196 covering 451 districts spread over 23 states with the network of14,467 branches these banks have been established by the government of india in terms of the provisions of regional rural banks act, 1976. Be it enacted by parliament in the sixtyfourth year of the republic of india as follows.
Pdf the performance of regional rural banks rrbs in india. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. The union cabinet today gave its approval to the proposed amendments in the regional rural banks rrbs act, 1976 to enhance authorized and issued capital to strengthen their capital base. An act further to amend the regional rural banks act, 1976. Mar 10, 2015 regional rural banks came into existence on gandhi jayanti in 1975 with the formation of a prathama grameen bank. May 19, 2015 the regional rural banks act has been incorporated on 9th february, 1976.
The rural banks of sbi is spread in states extending from kashmir to karnataka and himachal pradesh to north east. We exploit this fact to identify the impact of opening a rural bank on poverty and output. Regional rural banks rrbs are financial institutions which ensure adequate credit for agriculture and other rural sectors. Jan 31, 20 the union cabinet today gave its approval to the proposed amendments in the regional rural banks rrbs act, 1976 to enhance authorized and issued capital to strengthen their capital base. Subsequently, the rrbs were set up through the promulgation of rrb act of 1976. The regional rural banks act, 1976 the schedule see section 25 2 i, do hereby, declare that i will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as a director, member of a committee, officer, employee or auditor as the case may be of the regional rural bank and which properly. The other 4 regional rural banks were opened in gorakhpur up, malda wb, bhiwani haryana, and jaipur rajasthan the 1975 ordinance was later replaced by regional rural banks act, 1976. An act to provide for the incorporation, regulation and winding up of regional rural banks with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities.
Regional rural banks are established under the provisions of an ordinance promulgated on the 26 th september, 1975 and the rrb act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. An act to provide for the incorporation, regulation and winding up of regional rural banks with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to. The number of branches the sbi regional rural banks is. A study on indian rural banking industryissues and challenges. Subsequently, the rrbs were set up through the promulgation of rrb act1 of 1976. Jan 31, 20 regional rural banks were established under regional rural banks act, 1976 the rrb act to create an alternative channel to the cooperative credit structure and to ensure sufficient institutional credit for the rural and agriculture sector. There are 30 regional rural banks in india, under the state bank of india and it is spread in states across india.
The total number of sbis regional rural banks in india branches is 2349 16%. The rural banks had the legislative backing of the regional rural banks act 1976. Parliament passes amendment to regional rural banks bill. Regional rural banks rrbs are the indian scheduled commercial government banks operating at regional level in different states of india. Full text containing the act, regional rural banks act, 1976, with all the sections, schedules, short title, enactment date, and footnotes. Performance evaluation of regional rural banks in india.
Examine the salient features of regional rural bank. All rural banks created and organized under the provisions of this act shall be exempt from the payment of all taxes, fees and charges of whatever nature and description, except the corporate income tax and local taxes, fees and charges, for a period of five 5 years from the date of commencement of operations. Apr 28, 2015 a bill to amend the regional rural banks act was passed by parliament today, with government saying it was necessary to empower such financial institutions which are the jewel in the crown of. Regional rural banks act, 1976 bare acts law library. A study on merger impacts of regional rural banks in india. Regional rural banks were established under regional rural banks act, 1976 the rrb act to create an alternative channel to the cooperative credit structure and to ensure sufficient institutional credit for the rural and agriculture sector. The regional rural banks act has been incorporated on 9th february, 1976. Regional rural bank to be deemed to be a cooperative society for purpose of the incometax act, 1961.
The preamble to the act states the objective to develop rural economy by providing credit and facilities for the development of agriculture, trade, commerce, industry and other productive. A study on merger impacts of regional rural banks in india isbn. The regional rural banks act, 1976 legislation vlex 29633667. In this act, unless the context otherwise requires, a board, in relation to a. Rrbs are an integral part of rural credit system and are expected to play an increasingly important role in the development of, particularly, rural areas. Regional rural bank mergers exempt from control provisions.
Till date in rural banking in india, there are 14,475 rural banks in the country of. Notification under section 23a to be sufficient notice to concerned parties. Organisation, functions and management of regional rural. An act to provide for the incorporation, regulation and winding up of regional rural banks with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourer artisans and small. Regional rural banks appointment of officers and employees amendment rules, 2017downloadable pdf. Performance evaluation of regional rural banks with reference. The notification provides that sections 5 and 6 of the competition act 2002, which regulate combinations, will not apply to amalgamations of rrbs for which the government has issued a notification under the regional rural. Regional rural banks were established under the provisions of an ordinance passed on 26 september 1975 and the rrb act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors. The government of india promulgated the regional rural banks ordinance on 26 th september 1975, which was later replaced by the regional rural bank act 1976. Regional rural banks rrbs are indian scheduled commercial banks government banks. Their equity is held by the central government, concerned state. It was subse quently replaced by regional rural banks act of 1976 dated february 9, 1976.
Apr 16, 2016 regional rural banks rrbs were set up as governmentsponsored, regional based rural lending institutions under the regional rural banks act, 1976. Our estimates suggest that the indian rural branch expansion. Subsequently, the rrbs were set up through the promulgation of rrb act of. Rural people in india are still facing problems for inadequate supply of credit. Regional rural banks in india top bank exam tutorials in. As a result, five regional rural banks were set up on 2 october 1975,gandhi jayanti. Rrbs were configured as hybrid micro banking institutions, combining the local orientation and small scale lending culture of the cooperatives and the business culture of commercial banks. These regional rural banks rrbs have been receiving a high degree of importance and attention in the rural credit system. The performance of regional rural banks rrbs in india. Problems and prospects of regional rural banks in india. A regional rural bank is popularly known as gramin bank.
The paper use annual data obtained from bank of ghana and apex bank annual reports covering the existing 7 rcbs in ghana to study the. Cabinet approves amendments in regional rural banks act, 1976. The union cabinet, chaired by the prime minister shri narendra modi, today approved the amendments in the regional rural banks rrbs act, 1976 to enhance authorized and issued capital to strengthen their capital base and to bring flexibility in the shareholding between central government, state government and sponsor bank. All rural banks created and organized under the provisions of this act shall be exempt from the payment of all taxes, fees and charges of whatever nature and description, except the corporate income tax and local taxes, fees and charges, for a period of five 5. This act allowed the government to set up banks from time to. The regional rural banks act, 1976 the schedule see section 25 2 i, do hereby, declare that i will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as a director, member of a committee, officer, employee or auditor as the case may be of the regional rural bank and which properly relate to any office or position in the said bank held by me. Jun 28, 2017 the other 4 regional rural banks were opened in gorakhpur up, malda wb, bhiwani haryana, and jaipur rajasthan the 1975 ordinance was later replaced by regional rural banks act, 1976. The development process of rrbs started with the promulgation of an ordinance promulgated on 26th september 1975 which later on was replaced with regional rural bank act, 1976 with an objective to ensure. Revision of pay and allowances of regional rural banks employees under proviso 2 of section 17 1 of the regional rural banks act, 1976. The ministry of corporate affairs recently issued a notification exempting regional rural banks rrbs from the applicability of the merger control regime in india. This act allowed the government to set up banks from time to time wherever it considered necessary.
An act to provide for the incorporation, regulation and winding up of regional rural banks with a view to developing the rural. Revision of pay and allowances of regional rural banks. Rural banks act, 1976 21 of 1976 read with section 17 thereof and in supersession of the regional rural banks appointment and promotion of officers and other employees rules, 1998 except as respects things done or omitted to be done before such supersession, the central government after. Regional rural banks are established under the provisions of an ordinance promulgated on the 26th september, 1975 and the rrb act, 1976 with an objective to ensure sufficient institutional credit. A bill to amend the regional rural banks act was passed by parliament today, with government saying it was necessary to empower such financial. Regional rural banks came into existence on gandhi jayanti in 1975 with the formation of a prathama grameen bank. The regional rural banks act, 1976 provides for the incorporation, regulation and winding up of regional rural banks rrbs with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly, to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs. Thereafter, the first regional rural bank was setup in 1975 itself by the name prathama grameen bank. Previous story discuss the various functions of the reserve bank of india and also explain the system of note issue in india. The state bank of india is one of the major commercial banks having regional rural banks. Mar 24, 2020 regional rural banks rrbs are the indian scheduled commercial government banks operating at regional level in different states of india. Notwithstanding anything contained in this act, if the central government, after consultation with the national bank, the concerned state government and the sponsor bank, is of the opinion that it is necessary in the public interest or in the interest of the development of the area served by any regional rural bank or in the interest of the regional rural banks themselves, that two or more. Regional rural banks agricultural finance indiaagronet.
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