RRBs & Co-operative
Banking · RRB और सहकारी बैंक
📋Quick Overview
Regional Rural Banks (RRBs) were established in 1975 under the RRB Act 1976 on the recommendation of the Narasimham Working Group (M. Narasimham Committee). The first RRB was Prathama Bank, established on 2 October 1975 in Moradabad, Uttar Pradesh. RRBs are jointly owned by the Central Government (50%), State Government (15%), and Sponsor Bank (35%). Their objective is to provide credit to small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs in rural areas. Co-operative banks form a separate structure with a 3-tier system.
First RRB: Prathama Bank (2 Oct 1975, Moradabad, UP) | Shareholding: Centre 50%, State 15%, Sponsor Bank 35% | Narasimham Committee recommended RRBs | NABARD supervises RRBs
📝RRB — Key Features
- •Established under: RRB Act 1976 (amended in 1987, 2015)
- •Recommended by: Narasimham Working Group (1975)
- •First RRB: Prathama Bank, 2 October 1975, Moradabad, UP (Sponsor: Syndicate Bank)
- •Shareholding: Central Govt 50% + State Govt 15% + Sponsor Bank 35%
- •Supervised by NABARD (not directly by RBI)
- •Operate in limited areas (1-3 districts typically)
- •Total RRBs: 43 (after amalgamation, down from 196 originally)
- •Chairman of RRB is appointed by the Sponsor Bank
- •Priority sector lending: 75% of total loans
📖Co-operative Banks — 3-Tier Structure
| Tier | Level | Institution | Function |
|---|---|---|---|
| Top (Apex) | State Level | State Co-operative Bank (SCB) | Coordinates & finances district banks |
| Middle | District Level | District Central Co-operative Bank (DCCB) | Finances primary societies |
| Bottom (Base) | Village Level | Primary Agricultural Credit Society (PACS) | Directly lends to farmers |
Co-operative banks are registered under the Co-operative Societies Act. They are regulated by RBI (banking functions) and state government (management/registration). NABARD also supervises them.