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Question

Which is not true about Regional Rural Banks (RRBs)?

i)  RRBs were jointly prompted by Central Govt, State Govt and Sponsor Bank

ii)  Regulation of RRBs is done by RBI while responsibility of supervision lies with NABARD

iii)  RRBs have been becoming unsustainable due to the mounting losses due to imprudent commercial policy.

iv)   The number of RRBs are increasing for achieving greater Financial Inclusion in rural areas 

A Only i & iii Correct Answer Incorrect Answer
B Only ii & iii Correct Answer Incorrect Answer
C Only ii & iv Correct Answer Incorrect Answer
D Only iii Correct Answer Incorrect Answer
E Only iv Correct Answer Incorrect Answer

Solution

There were 196 RRBs few years ago and the number is decreasing which has come down to 56 by March 2016. Govt initiated scheme of merger of RRBs with their parent banks as most of the RRBs were running into losses and were having weak credit portfolio. 

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