Definition
The full form of RRB in finance is Regional Rural Bank. These banks are Indian Scheduled Commercial Banks (SCBs) operating at regional levels in various states of India. They have been created with a view to serve primarily the rural areas offering various banking and financial services.
Key Takeaways
- RRB stands for Regional Rural Bank. These banks are Indian schedule commercial banks operating at regional levels in different states of India.
- RRBs were established with a goal to provide sufficient banking and credit facility for agriculture and other rural sectors. They primarily focus on the rural areas with basic banking and financial services.
- The operation of RRBs is often beyond conventional banking, they play a pivotal role in the financial inclusion policy and are instrumental in providing credit to the rural and semi-urban population.
Importance
The full form of RRB in finance is ‘Regional Rural Bank’. Its importance lies in its role in promoting rural economics by providing banking services to rural and semi-urban areas in India.
RRBs provide many mainstream banking services, especially to small and marginal farmers, agricultural laborers, artisans, and even small entrepreneurs, playing a significant part in financial inclusion strategies.
They support rural development and stimulate the local economies by facilitating a continuous flow of financial services like providing loans and accepting deposits, thereby helping in the overall economic development and poverty reduction in these areas.
Explanation
The full form of RRB in the financial sector stands for Regional Rural Bank. These are local-level banking institutions which operate in different states of India; they were created with the intention of serving primarily the rural areas of India with basic banking and financial services.
Established under the RRB Act 1976, the Regional Rural Banks were aimed to provide an efficient banking structure in rural areas, bridging the financial gap and promoting inclusive growth in these regions. The purpose of Regional Rural Banks is to ensure sufficient institutional credit for agriculture and other rural sectors.
These institutions fulfill their purpose by offering various services such as deposit and loan products to rural individuals, or those engaged in small businesses, agriculture, or related occupations. Furthermore, they play a vital role in promoting rural development by providing credit to the weaker sections of the rural areas, thereby stimulating job opportunities in these regions.
Their significant role in the rural economic structure makes RRBs essential to India’s ambitions of inclusive financial growth.
Examples of Full Form of RRB
The term “RRB” in finance typically stands for Regional Rural Bank. This is the common and principal usage in banking and finance, particularly in India. Regional Rural Banks are local level banking entities operative in different States of India. They were created with a view to serve primarily the rural areas of India with basic banking and financial services.
**Prathama UP Gramin Bank:** An example in India in the state of Uttar Pradesh is Prathama UP Gramin Bank. It was established in 1975 and is sponsored by Syndicate Bank. Its objective is to strengthen rural economies by providing credit support for agriculture and other productive activities in rural areas.
**Andhra Pradesh Grameena Vikas Bank:** Another example is the Andhra Pradesh Grameena Vikas Bank in the Southern State of Andhra Pradesh in India. It was initially started to cater to the financial needs of the rural population in the state.
**Punjab Gramin Bank:** This is another example of RRB in India, located in the state of Punjab. It was set up to cater to the specific financial needs and to encourage economic development in Punjab’s rural areas. These banks are state-specific and offer banking services to local people, mostly covering farmers, small traders, artisans, and small enterprises.
FAQs on Full Form of RRB
Q1: What is the full form of RRB?
The full form of RRB is Railway Recruitment Board.
Q2: What is the purpose of the Railway Recruitment Board (RRB)?
RRB is a government organisation in India which is responsible for appointing new employees to work in the Indian railways.
Q3: How many RRBs are there in India?
As of now, there are 21 Railway Recruitment Boards across different parts of India.
Q4: What types of jobs are available through RRB?
RRB conducts various exams to recruit individuals for posts like Group D Level I, Paramedical Staff, Ministerial and Isolated Categories, and more.
Q5: How can one prepare for upcoming RRB exams?
One should stay updated with the RRB notifications and syllabus, practice previous year question papers and take mock tests to prepare for the exams organised by RRB.
Related Entrepreneurship Terms
- Rural Banking: RRBs primarily focus on providing banking facilities to the rural and semi-urban areas.
- Regional Spread: RRBs have defined operating regions, mostly bridging rural and semi urban areas.
- Microfinance: RRBs play a crucial role in distributing micro-credits to small and marginal farmers, and micro-enterprises.
- Sponsor Banks: Every RRB is sponsored by a commercial bank which infuses capital, provides branch network and manages its operations.
- Government Support: The Central Government, State Government and the sponsor bank jointly form the support system of an RRB.
Sources for More Information
- Reserve Bank of India: The official site of the Reserve Bank of India, it provides comprehensive information on the functions and responsibilities of RRB.
- Institute of Banking Personnel Selection (IBPS): This site carries recruitment notifications related to RRB and can provide useful operational details about the RRBs.
- Investopedia: A leading financial information source offering definitions and explanations of all finance related terms including RRB.
- National Bank for Agriculture and Rural Development (NABARD): NABARD is involved in policy decisions regarding RRBs. Their official site can provide holistic understanding about the RRBs.
