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. This document details the provision of the regional rural banks act, passed in 1976, by the government of india. This act may be called the regional rural banks act, 1976. It was established on 26 february 2007 2 in exercise of the powers conferred by subsection 1 of section 23a of the regional rural bank act, 1976 21 of 1976. It is, therefore, reiterated that regional rural banks are not eligible for deduction under.
Feb 24, 2021 an ordinance for the establishment of regional rural banks was passed on september 26, 1975, this being the date of establishment of rrbs. List of regional rural banksrrb in india entri blog. Rajya sabha passed regional rural banks amendment bill, 2014. The trend towards inclusive banking again got a shot in the arm in the mid1970s when a new set of commercial banks, the regional rural banks rrbs, were introduced to improve the efficacy of the rural credit delivery mechanism. In 1969 after nationalization of banks in india the banking system started to boost. As a result, five regional rural banks were set up on 2 october 1975,gandhi jayanti. Rural banks in those days mainly focussed upon the agro sector. Advantages disadvantages of working in a regional rural bank. Table 1 growth of regional rural banks in india years number of rrbs number of branches 200809 196 14,446 200910 3 14,484 201011 94 14,494. Government of india approved revision in the regional rural banks rrbs act, 1976 which seeks to improve their capital base and to fix the maximum term of appointment of the.
The regional rural banks act has been incorporated on 9th february, 1976. Several of these were incorporated as amendments to the rrb act, 1976 such. Amendments to regional rural banks act, 1976 prime. Regional rural bank has takes part in the development of our indian economy. The regional rural banks act 1976 provide for incorporation, regulation and winding up regional rural banks with a view to developing the rural economy by providing for the purpose. Regional rural banks were established under the provisions of an ordinance passed on 26 september 1975 and the rrb act 1976 to provide sufficient. The regional rural banks act 1976 provide for incorporation, regulation and winding up 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 labourers. Thus the process of merger in 196 rrbs, spread over 14,496 branches in.
Full text containing the act, regional rural banks act, 1976, with all the sections, schedules, short title, enactment date, and footnotes. The regional rural banks act, 1976 was enacted on the 9th february, 1976 and new type. The regional rural banks amendment act, 2015 lawyers law. The regional rural banks were established with a view to develop such type of banking institutions which could function as a commercial organization in rural areas. The idea of establishing rural banks was once again raised in the year 1975 as part of the prime ministers 20 point economic programme. They are recognized by the law and have a legislative backing of the regional rural banks act 1976 which allows the. 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. India code link to regional rural banks act,1976 21 of 1976 9th february, 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 were 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 for agriculture and other rural sectors. Amendments to regional rural banks act, 1976 prime minister. Regional rural banks vs cooperative banks bankexamstoday. 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. Thus the process of merger in 196 rrbs, spread over 14,496 branches in 518 districts in india has quietly begun.
Board, in relation to a regional rural bank, means the board of directors of that regional rural bank. It was established on 26 february 2007 in exercise of the powers conferred by subsection 1 of section 23a of the regional rural bank act, 1976 21 of 1976. The regional rural banks act rrb act was passed in 1976. Apr 30, 2015 the amendment bill 2014 seeks to amend the regional rural banks act, 1976, which provided process for the incorporation, regulation and winding up of regional rural banks rrbs. Mar 08, 2016 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 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. The regional rural banks act, 1976legislative department.
Regional rural banks rrbs were established in 1975 under the provisions of the ordinance promulgated on the 26th september 1975 and followed by regional rural banks act 1976 with a view to develop the rural economy and to create credit. Regional rural banks comes under scheduled commercial banks. The basic difference bw them are in their holding pattern. The authors would also like to extend special thanks to mr. The exportimport bank of india act, 1981 28 of 1981. Regional rural banks rrbs were established in 1975 under the provisions of the ordinance promulgated on 26thsept1975. In terms of section 23 of the regional rural banks act, 1976, the sponsor bank nabard and the state governments concerned have already given their concurrence for the proposed amalgamation of 14 rrbs. Banking regulation act, 1949 reserve bank of india. Regional rural banks were established under the provisions of an ordinance passed in september 1975 and the regional rural bank act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors. Regional rural banks not eligible for deduction us.
The rural banks had the legislative backing of the regional rural banks act 1976. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. 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. Merger of rrbs with the sponsor bank is not provided in the rrb act 1976. National bank for agriculture and rural development 1 the national bank for agriculture and rural development act, 1981 no. The performance of regional rural banks rrbs in india. Pdf as it is generally understood, corporate governance is a set of structural arrangements that emerges in free market economies, to align the. 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. May 19, 2015 the regional rural banks act has been incorporated on 9th february, 1976. Regional rural banks act, 1976 mylegalwork online legal.
Regional rural banks have been in existence for around three decades in the indian financial scene. Regional rural bank, means the board of directors of that regional rural bank. Paschim banga gramin bank pbgb is a premier government owned regional rural bank rrb in india. The deposit insurance corporation amendment and miscellaneous provisions act, 1978 21 of 1978. Regional rural banks free notes, pdf, current affairs and. May 02, 2015 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. Section 23 restrictions on opening of new, and transfer of existing, places of business. Regional rural banks act, based on narsimhan committees recommendations for greater financial inclusion. Regional rural banks agricultural finance indiaagronet. National conference on marketing and sustainable development october 14, 2017 isbn 9781943295104 602 by financing for the development of agriculture, commerce, industry and other productive.
Regional rural banks came into existence on gandhi jayanti in 1975 with the formation of a prathama grameen bank. The national bank for agricultural and rural development act. This act allowed the government to set up banks from time to time wherever it considered necessary. In the beginning they were established under the presidential ordinance on rrbs. The central bank shall have the power to enforce the laws, orders, instructions, rules and regulations promulgated by the monetary board applicable to rural banks. List of rrb regional rural banks in india in detail. Regional rural bank designed to develop the rural areas of india. Thereafter, the first regional rural bank was setup in 1975 itself by the name prathama grameen bank. An act further to amend the regional rural banks act, 1976. Base don the recommendations of the group the government of india began to establish regional rural banks from 2nd october 1975 onwards. 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.
In this act, unless the context otherwise requires, a board, in relation to a. 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. Regional rural bank to be deemed to be a cooperative society for purpose of the incometax act, 1961. Rrbs aim to combine efficiency of a commercial bank with grassroot networking of a cooperative society. Mergers, even if allowed, would not be a desirable way of restructuring. Five rrbs were first established on the occasion of gandhi jayanti, on october 2nd, 1975. National bank for agriculture and rural development. Narasimham was set up in 1975 to examine in dept the setting up of rural banks as subsidiaries of public sector banks to cater to the needs of the rural people. The regional rural banks rrbs were established in 1975 under the provisions of the ordinance promulgated on 26th september, 1975 and regional rural banks act, 1976 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. It shall be deemed to have come into force on the 26th day of september, 1975. 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.
The institution of regional rural banks rrbs was created to meet the excess. Their equity is held by the central government, concerned state. 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. Recapitalization of regional rural banks rrbs indiathinkers. Regional rural banks act, 1976 bare acts law library. The transfer of banking business to semiurban and urban centers was even mo. Regional rural banksappointment of officers and employees. A study on merger impacts of regional rural banks in india. 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. Rrb regional rural bank is a commercial bank which is owned by our indian government. The board of directors shall consist of the chairman appointed under subsection 1 of section 11, and the following other members, namely. Regional rural banks in india have achieved tremendous growth in terms of number of banks and its wide braches which is shown in the table1.
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. The board may, after consultation with the 7 national bank, the concerned state government and the sponsor bank and with the prior approval of the central government, from time to time, increase the issued capital of the regional rural bank. Regional rural banks appointment of officers and employees amendment rules, 2017 downloadable pdf. Download for free of cost and get access to video classes. In this act, unless the context otherwise requires, a. The rrbs were established in india under the rrb act, 1976 with a view to develop the rural. 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. The bank is established by the amalgamation of howrah gramin bank, bardhaman gramin bank and mayurakshi gramin bank. But later under the regional rural banks act which was passed in february 1976. List of rrb regional rural banks in india in detail upsc. Mar 26, 2020 countdown for new upsc ias preliminary exam date recapitalization of regional rural banks rrbs the cabinet committee on economic affairs, chaired by prime minister shri narendra modi, has given its approval for continuation of the process of recapitalization of regional rural banks rrbs by providing minimum regulatory capital to rrbs for another year beyond 201920. The genesis of the rrbs can be traced to the need for a stronger institutional arrangement for providing rural credit.
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