Question

The main functions of the RRBs are:
I. to grant loans and advances to the weaker sections of the urban population.
II. to grant loans and advances to cooperative societies.
III. to generate employment opportunities in rural areas.
IV. to grant loans and advances to the small and marginal farmers.
Which of the given options are correct?

• A. I and II are correct
• B. I, II and III are correct
• C. II, III and IV are correct
• D. All are correct.

Answer 1

The correct option is C II, III and IV are correct

The functions of the RRB are as follows:

(1) Granting of loans and advances to small and marginal farmers and agricultural labourers, whether individually or in groups, and to co-operative societies, agricultural processing societies, co-operative farming societies, primarily for agricultural purposes or for agricultural operations and other related purposes;

(2) Granting of loans and advances to artisans, small entrepreneurs and persons of small means engaged in trade, commerce and industry or other productive activities within its area of co-operation; and

(3) Accepting deposits.

By concluding above functions we can say that Regional Rural Banks doesnot grant loans and advances to the weaker sections of urban people.