REGULATION OF RURAL FINANCIAL SERVICES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Rural Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
Which apex body primarily regulates rural financial services in India?
The Reserve Bank of India (RBI) is the primary apex body regulating rural financial services, with NABARD playing a complementary supervisory role over cooperative banks and RRBs.
Which Act established the framework for regulation of Regional Rural Banks in India?
The Regional Rural Banks Act, 1976 governs RRBs.
Under which Act was NABARD established?
NABARD was established under the National Bank for Agriculture and Rural Development Act, 1981, and commenced operations on 12 July 1982.
What is the minimum net owned fund required for an NBFC-MFI to operate in rural areas?
Minimum net owned fund is Rs. 5 crore for NBFC-MFIs.
What is the role of NABARD in regulating Regional Rural Banks?
NABARD exercises supervisory powers over RRBs under the RRB Act, 1976, conducting inspections and issuing guidelines, while RBI retains regulatory authority over their banking functions.
What is the maximum loan amount permissible for a microfinance borrower under RBI's 2022 guidelines?
Maximum loan ceiling is Rs. 3 lakh per borrower.
Which legislation governs the registration and operation of cooperative societies in India?
Cooperative societies are primarily governed by the respective State Cooperative Societies Acts, while multi-state cooperatives fall under the Multi-State Co-operative Societies Act, 2002.
Under which scheme does RBI mandate banks to open branches in unbanked rural centres?
RBI's branch authorisation policy mandates rural branch opening.
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