Q. Consider the following statements regarding Regional Rural Banks (RRB’s):
1.RRB’s were formed in 1975.
2.RRB’s were providing credit to the weaker sections of the society at concessional rate of interest.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: The Regional Rural Banks (RRBs) were first set up on 2 October, 1975 (only 5 in numbers) with the aim to take banking services to the doorsteps of the rural masses specially in the remote areas with no access to banking services with twin duties to fulfill

  1. To provide credit to the weaker sections of the society at concessional rate of interest who previously depended on private money lending, and
  2. To mobilize rural savings and channelize them for supporting productive activities in the rural areas.

Source: TMH Ramesh Singh