Regional Rural Banks|Financial Institutions
Set up in 1975.Their main objective is to develop the rural economy by providing credit and encouraging other productive activities in the rural areas.
These banks provide institutional credit to the weaker sections of the society at concessional rate of interest.
On Oct 2, 1975, initially 5 RRBs were
established at Moradabad and
Gorakhpur (UP), Bhiwani (Haryana)
Jaipur (Rajasthan) and Malda (West
The first RRB was Prathama Bank
HQ-Moradabad), sponsored by
Syndicate Bank. Kerala Gramin Bank is the largest RRB (HQ-Malappuram),
Sponsored by Canara Bank.
Initially, the authorized capital of an
RRB was Rs One crore (now raised to Rs
2,000 crore). The paid-up capital of each
RRB was Rs 25 lakh (now raised to Rs
One crore), fifty percent of which is
contributed by the Central Government,
15 percent by the State Governments
and 35 percent by the sponsoring public
sector Commercial banks wich are
respons for the actual setting up of
OTHER FINANCIAL INSTITUTIONS:
1. Industrial Credit and Investment Corporation Of India Bank (Now ICICI Bank): Established in 1955 as a public limited company to encourage and assist
industrial units of the nation. It has
been converted into a bank with effect
from May 3, 2002.
2. Small Industries Development
Bank of India (SIDBI) : Established in 1990; promotes small scale sector.
3. National Bank of Agriculture
and Rural Development (NABARD) : Established on Nov 5, 1982; gives credit facilities to farmers.
4. Export-import Bank of India
(EXIM): Set-up on Jan 1, 1982; grants deferred credit to Indian exporters in order to operate in the international market
5. Industrial Development Bank of
India (Now IDBI Bank): The IDBI which was established as Development Finance Institution under IDBI Act, 1964 has been converted as a banking company.
6. Industrial Finance Corporation
of India Ltd. (Now IFCI Bank) :
Finance Corporation of India Ltd. was
established in 1948 under a special Act
on the recommendations of Central
Banking Enguiry Committee. The basic aim of IFCI is to arrange medium and Long term credit for various industrial enterprises of the country.
7. National Housing Bank (NHB):
National Housing Bank was
estabished in July 1988 as wholly
Owned subsidiary of RBI.NHB is the
apex banking institution providing
finances for houses.
A major acivity of NHB includes
extending financial assistance to eligible
institutions in the housing sector by way
of refinance and direct finance.
Also Read : Unemployment in India