CAIIB · RB

RURAL Banking 2024

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Rural Banking (Elective) — CAIIB.

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One-liners from this chapter

Free sample — 8 of 66 rapid-fire Q&A cards.

Q

What is the primary objective of rural banking in India?

A

Rural banking aims to extend formal financial services to rural populations, enabling credit access, deposit mobilization, and financial inclusion for agricultural and allied activities.

Q

What is the Narasimham Committee (1991) recommendation related to rural credit?

A

Reducing directed credit and freeing interest rates for rural loans.

Q

Which committee recommended the establishment of Regional Rural Banks (RRBs) in India?

A

The Narasimham Working Group (1975) recommended the establishment of Regional Rural Banks to provide credit and banking facilities in rural areas at lower cost.

Q

What is the full form of NABARD?

A

National Bank for Agriculture and Rural Development.

Q

Under which Act were Regional Rural Banks established in India?

A

Regional Rural Banks were established under the Regional Rural Banks Act, 1976, with the first RRB (Prathama Bank) set up in Uttar Pradesh on 2nd October 1975.

Q

In which year was NABARD established?

A

NABARD was established in 1982.

Q

What is the ownership pattern of Regional Rural Banks?

A

RRBs have a tripartite ownership: Central Government holds 50%, sponsor bank holds 35%, and the concerned State Government holds 15% of the equity.

Q

What is the PSL sub-target for small and marginal farmers?

A

8% of Adjusted Net Bank Credit (ANBC).

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