JIMS8M: The Journal of Indian Management & Strategy
Year : 2006, Volume : 11, Issue : 4
First page : ( 1) Last page : ( 11)
Print ISSN : 0973-9335. Online ISSN : 0973-9343.

Efficacy of Regional Rural Banks (RRBs) in India: A conventional analysis

Pal Karam¹, Associate Professor, Singh Jasvir², Ph.D. Scholar

¹Department of Business Management, Guru Jambheshwar University of Science of Technology, Hisar-125001 (Haryana) INDIA.

²Department of Business Management, Guru Jambheshwar University of Science of Technology, Hisar-125001 (Haryana) INDIA.

Abstract

The burden of indebtedness in rural India is exceptionally enormous. Despite major structural changes in credit institutions and forms of rural credit in the post-Independence period, the exploitation of the rural masses in the name of credit facility is one of the most pervasive and persistent features of rural India. The objectives of this paper are to assess the growth pattern of RRBs and to examine the credit distribution and geographical distribution of RRBs. The analysis period of the study is from 1975 to 2005. The overall position of RRBs in India is not quite encouraging. The poor credit-deposit ratio is still making dent on the improved functioning of RRBs. Since the RRB is supposed to be a bank for poor people, its presence in all the states of country especially in underdeveloped States can make things better. The government should spread the branches of RRBs at grassroot level to provide such banking service to the really needy rural people. Moreover, it is the responsibility of the bank management and the sponsored bank to take corrective measures to raise the credit-deposit ratio of the bank that would make RRBs relevant in the rural India.

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