Question
Consider the following about Regional Rural Bank
Ownership structure. I. It is sponsored, regional based rural lending institutions under Regional Rural Banks Act, 1976. II. They are jointly owned by the Central Government, concerned State Government and Sponsor Banks with the issued capital shared in the proportion of 50%, 15% and 35% respectively. III. RRBs are required to provide 75% of their total credit as priority sector lending(PSL). Which of the above statements is/are correct?Solution
RRBs were set up as government-sponsored, regional based rural lending institutions under Regional Rural Banks Act, 1976. They were set up on the basis of recommendations of Narasimhan Working Group. RRBs are jointly owned by Central Government, concerned State Government and Sponsor Banks with the issued capital shared in the proportion of 50%, 15% and 35% respectively. The RRBs are required to provide 75% of their total credit as priority sector lending(PSL).
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