Kolkata: Regional rural banks are a special category of banks that by definition are focused on the development of the rural economy. These banks are one of the mainstays of the rural scene in India. If the rural economy in the country is improving, the RRBs will certainly get some credit for it. RRBs are set up by the cooperation of three parties — the Centre, the respective state government and a PSU bank which is known as the sponsoring bank. They help in supporting the credit needs of the grassroots sections such as small and marginal farmers, agricultural labourers and other weaker sections. The origin of RRBs is the Narasimham Committee report on rural credit in 1975 which recommended the establishment of this category of banks.

The government has indicated that a few RRBs will be

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