DEPARTMENT OF B.COM BANKING & INSURANCE SUBJECT: INDIAN BANKING SYSTEM TOPIC: UNIT 1: REGIONAL RURAL Staff-in-charge: Dr.R.Mahara Jothi Priya Associate Professor and Head REGIONAL RURAL BANKS UNIT - 1

MEANING

• Regional Rural Banks(RRBs) are Indian ScheduledCommercialBanks (Government Ba nks) operating at regional level in different States of . They have been created with a view of serving primarily the rural areas of India with basic banking and .

• Providing banking facilities to rural and semi- urban areas. FUNCTIONS • Carrying out government operations like disbursement of wages of MGNREGA workers, distribution of pensions etc. • Providing Para-Banking facilities like locker facilities, debit and credit cards,,internet banking,UPI etc. • Small financial banks. CONCEPTS OF RRB

• Regional Rural Banks were established under the provisions of an Ordinance passed on 26th September,1975 and the RRB Act 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors • As a result Five Regional Rural Banks were set up on 2nd October,1975,Gandhi Jayanti • The Regional Rural Banks were owned by the Central Government, the State Government and the Sponsor (Any can sponsor the regional rural banks) who held shares in the ratios as follows Central Government – 50%, State Government – 15% and Sponsor Banks – 35%. ORGANISATION STRUCTURE

• The organizational structure for RRB's varies from branch to branch and depends upon the nature and size of business done by the branch. The Head Office of an RRB normally had three to nine departments. • The following is the decision making hierarchy of officials in a . • Board of Directors • Chairman & Managing Director • General Manager • Chief Manager • Regional Manager • Senior Manager • Manager • Officer • Office Assistant • The government in the past few years have been trying to consolidate RRBs. Earlier in January, three regional rural banks (RRBs) — Punjab Gramin Bank, Malwa Gramin Bank and Sutlej Gramin Bank — were merged into a single entity • There are 64 Regional Rural Banks in India and amongst those, only 56 RRB's participated in 2018. The expected number of Regional Banks that will be participating in IBPS RRB Recruitment 2019 has been mentioned below RRBS IN TAMILNADU

• Grama Bank

S.No. List of RRBs Head Offices 1. Salem 2.