The main objective of RRB [Regional Rural Bank] is to provide credit to:a)Weaker section of rural areasb)Weaker sectionsc)Industrial areasd)Agricultural sectorCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Regional Rural Banks (RRBs) are financial institutions which ensure adequate credit for agriculture and other rural sectors . Regional Rural Banks were set up on the basis of the recommendations of the Narasimham Working Group (1975), and after the legislations of the Regional Rural Banks Act, 1976. The first Regional Rural Bank “Prathama Grameen Bank” was set up on October 2, 1975. At present there are 82 RRBs in India.

Answer

RRBs plays a vitall role in the economic development of the rural India. The main goal of establishing regional rural banks in India was to provide credit to the rural people who are not economically strong enough, especially the small and marginal farmers, artisans, agricultural labours, and even small entrepreneurs. hence option A is the correct answer

Answer

The main objective of Regional Rural Banks (RRBs) is to provide credit to the weaker section of rural areas.

Explanation:

Regional Rural Banks (RRBs) were established with the primary objective of providing credit and financial services to the rural and agricultural sectors of the economy, particularly to the weaker sections of the society. Let's understand this objective in detail:

1. Weaker section of rural areas:
- RRBs aim to provide credit facilities to the economically disadvantaged and weaker sections of the society residing in rural areas.
- The weaker sections include small and marginal farmers, landless laborers, artisans, and other vulnerable groups who lack access to formal credit sources.
- By extending credit to these sections, RRBs aim to uplift their socio-economic conditions and promote financial inclusion.

2. Financial inclusion:
- RRBs play a crucial role in promoting financial inclusion by providing affordable and accessible banking services to the rural population.
- They offer a wide range of financial products and services, including savings accounts, loans, insurance, and remittance facilities.
- By reaching out to the underserved and unbanked sections of rural areas, RRBs contribute to reducing the financial disparity and bridging the urban-rural divide.

3. Agricultural sector:
- RRBs focus on providing credit specifically to the agricultural sector, which is the backbone of the rural economy.
- Farmers, both small and marginal, require financial support for agricultural activities, such as purchasing seeds, fertilizers, machinery, and meeting other working capital requirements.
- RRBs provide loans for agricultural purposes, including crop loans, farm mechanization, irrigation, horticulture, and allied activities.
- By catering to the credit needs of the agricultural sector, RRBs facilitate increased agricultural production, higher farm productivity, and overall rural development.

Conclusion:
The main objective of Regional Rural Banks (RRBs) is to provide credit to the weaker section of rural areas, primarily focusing on the agricultural sector. RRBs aim to uplift the socio-economic conditions of the economically disadvantaged population and promote financial inclusion in rural areas.

Similar CA Foundation Doubts

The main object of Regional Rural Banks is to provide credit to

In pre-industrial times, which of the following contributed the most to a countrys economy?

Out of 1000 persons, 25% were industrial workers & the rest were agricultural workers. 300 persons enjoyed world cup matches on TV. 30% of the people who had not watched world cup matches were industrial workers. What is the number of agricultural workers who had enjoyed world cup matches on TV?

Top Courses for CA FoundationView all

Quantitative Aptitude for CA Foundation

Accounting for CA Foundation

Business Laws for CA Foundation

Business Economics for CA Foundation

Mock Tests & Past Year Papers for CA Foundation

Top Courses for CA Foundation

Top Courses for CA Foundation

Related Content

CA Foundation Courses

Other Courses

How To Prepare?

Other Exams

Company