RRB (Regional Rural Bank) is also known as ‘Gramin Bank’. It was established in 26th September 1975 with the objective of the economic development of India. The ideology behind RRB is to focus on the upliftment of the rural economy because it is assumed that Real growth of Indian Economy lied in the freeing of rural masses from unemployment, acute poverty and socio-economic backwardness.
RRBs works for fulfilling the needs of rural population comprised of: -
- Agricultural laborers
- Small entrepreneurs
- Small and marginal farmers
- Mobilize deposits from rural households
Role for RRB: - RRB has following major role in implementation of central and state government sponsored various programme of poverty alleviation as-
- Swarnajayanti Gram Swarozgar Yojana(SGSRY)
- Prime minister Rozgar guarantee Yojana
- Old Age pension
- Midday Meal
- Indira Awas Yojana
- Payment to Aganbadi
- Scholarship to Students
- Labor payment for NAREGA laborers
NABARD is the main regulatory authority of all Regional rural Banks in India.
The structure of RRBs: - RRB’s has mainly three shareholders namely-
i. Government of India - 50% share
ii. Sponsor Bank - 35% share
iii. State Government - 15% share
Organizational structure varies from banks to banks, depending upon the nature and size of business done by the Branch.RRB’s office had three to seven departments.
Following is the decision making hierarchy of officials in RRB’s.
i. Board of Directors
ii. Chairman & Managing Director
iii. General Manager
iv. Chief manager /regional managers
v. Senior manager
vii. Assistant manager