Question

Which one of the following is the basic objective for the setting up of Regional Rural Banks (RRBs) in India?

• A. Development of more diverse banking systems in Indian money market
• B. Diversification of scheduled commercial banking systems in India to tap the deposits potential of rural areas
• C. Development of rural areas by providing credit to agriculture, trade, commerce and other productive activities in rural areas
• D. Both 'a' and 'b'

Answer 1

The correct option is C Development of rural areas by providing credit to agriculture, trade, commerce and other productive activities in rural areas

Regional Rural Banks (RRBs) were established on the recommendations of the Narsimham Committee in 1975. The basic objective was to further the goal of financial inclusion and extend credit and other banking facilities to rural areas so as to ensure overall rural development.