Regional Rural Banks

Fact Figures From Reports

111.5 million Rural Households without access to formal financial services. 15.1 million Rural and 2.8 million urban households indebted to moneylenders. 67.2% households borrowed from non-institutional sources Credit from scheduled commercial banks to small unorganized sector enterprises to only 2.4 million out of 58 million units. Lower income levels, higher the exclusion .Only 27.5% of earners in annual income bracket <Rs 50,000 borrowed from institutional sources vis--vis 70% with income >Rs 4,00,000.

Formation of the regional rural banks (RRBs)

Formation of the regional rural banks (RRBs) under the Regional Banks Act 1976. These are state sponsored, region based, ruralbased, rural-oriented, commercial banks. Their ownership vests with the sponsoring commercial banks, Central Government, and the Government of the State in which they are geographically located. Under this approach, 196 RRBs were set up.

Introduction
RRBs were established with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural labourers, artisans and small entreprenuers and for matters connected herewith and incidental thereto RRBs alone have organized roughly 12 lakh self-help groups, 45 percent of the total self-help groups in the country. RRBs have also issued over 80 lakh Kisan Credit Cards to the farmers and organized over 50,000 out of 11,000 farmers clubs under NABARD scheme.

PSBs RRB CBs s

Number Total Branches

% rural branches Total Deposit Balances(Rs.billion) Total Credit 5094 184 outstanding Credit in rural areas 10% 72% ,%of total credit

27 46118 42% 9688

196 1481 6 83% 432

397 N.A. N.A. 944 823

Private, foreign & others 76 5595 20% 2340 1716

100% 2%

Financial Performance Indicators By Sectors

Indicators Credit-Deposit Deposit/Total liabilites Priority Sector Advances Cost of Funds Return on advance All RRBs All scheduled Commercial Banks

Thrust Area
Extension of Area of operation. Branch Expansion in unserved areas. Farmers Club Kisan Credit Card (KCC) Debt Swap Scheme Information Technology Training Staff of all CADREs of RRBs New Products eg.Insurance & Non-fund Based Buisness Co-Branding of Products.

DEBT SWAP SCHEME

Goal Status & Action Taken Debt Swap 1) NABARD launched in April Scheme- Each 2007 a refinance scheme Branch may adopt Krishak Saathi Scheme to at least one village redeem loans of indebted for freeing them farmers. from money lenders. 2) NABARD increased refinance limits for financing a borrower up to Rs.50 lakhs 3) Increased exposure limit of Rs.15 lakhs for single borrower.