Overview of Regional Rural Banks (RRBs) 2024

Questions and Answers

What percentage of branches do Regional Rural Banks (RRBs) hold in rural and semi-urban areas?

80%

60%

50%

92% (correct)

As of 31 March 2024, how many loan accounts are held by Regional Rural Banks (RRBs)?

4 crore

3 crore (correct)

2 crore

5 crore

What is the share of Regional Rural Banks (RRBs) in the total deposit amount among all banks?

3.2% (correct)

4.5%

2.9%

5.0%

What is the total number of deposit accounts as of 31 March 2024 in Regional Rural Banks (RRBs)?

31.3 crore Signup and view all the answers

In how many states and Union Territories (UTs) do Regional Rural Banks (RRBs) operate?

26 states and 3 UTs Signup and view all the answers

What is the total number of branches operated by Regional Rural Banks (RRBs) as of 31 March 2024?

22,069 branches Signup and view all the answers

What favorable share do Regional Rural Banks (RRBs) hold in rural branch operations compared to all banks?

30% Signup and view all the answers

How many Regional Rural Banks (RRBs) were operational as of 31 March 2024?

43 RRBs Signup and view all the answers

Which financial inclusion scheme is not associated with the RRBs?

Swabhiman Yojana Signup and view all the answers

What is the primary role of RRBs in relation to the GOI's financial inclusion initiatives?

To implement flagship schemes Signup and view all the answers

Which of the following schemes aims to provide life insurance coverage for rural citizens?

Pradhan Mantri Jeevan Jyoti Bima Yojana Signup and view all the answers

In which fiscal year did RRBs report profits before the mentioned FY2024?

FY2023 Signup and view all the answers

What does PMJDY stand for?

Pradhan Mantri Jan Dhan Yojana Signup and view all the answers

Which financial product aims to offer pension benefits to the working population in India?

Atal Pension Yojana Signup and view all the answers

Which of the following primarily concerns the insurance sector in rural areas?

Pradhan Mantri Suraksha Bima Yojana Signup and view all the answers

Which organization is mainly responsible for implementing the financial inclusion schemes mentioned?

Regional Rural Banks (RRBs) Signup and view all the answers

Which element is crucial for the success of the financial schemes implemented by the RRBs?

Effective financial literacy programs Signup and view all the answers

What trend was observed in the number of loss-making RRBs from FY2020 to FY2024?

Decreased from 18 to 3 Signup and view all the answers

Which of the following RRBs was reported to turn profit after the longest period of losses?

Assam Gramin Vikash Bank Signup and view all the answers

What was a contributing factor to the operational difficulties faced by Ellaquai Dehati Bank and Manipur Rural Bank?

Curfew and disturbances Signup and view all the answers

What was the outcome for 38 out of the 43 RRBs in terms of GNPA during FY2024?

It reduced in both absolute and percentage terms Signup and view all the answers

Which regulatory guidelines did all RRBs meet during FY2024?

Priority Sector Lending guidelines Signup and view all the answers

How many RRBs reported increased net profit in FY2024 from those posting profit in FY2023?

32 RRBs Signup and view all the answers

Which RRB was in losses since FY2019, except for a nominal profit in FY2022?

Assam Gramin Vikash Bank Signup and view all the answers

What is indicated as a significant result of the increase in technology adoption by RRBs?

Improvement in financial inclusion scheme implementation Signup and view all the answers

How many RRBs continued to report losses despite the overall improvement in the sector during FY2024?

2 RRBs Signup and view all the answers

Which of the following statements is true regarding the fiscal performance of RRBs in FY2024?

Most RRBs turned loss into profit Signup and view all the answers

What is the new bulk deposit limit for RRBs as of 26 October 2023?

₹1 crore Signup and view all the answers

Which of the following statements is not true about the RRBs classified as 'RRBs in Focus' during FY2024?

The number of RRBs in focus increased from FY2023. Signup and view all the answers

Which workshop focused on MSME lending and was held on 4 January 2024?

Convergence/Awareness of GOI Policies on MSME Lending Signup and view all the answers

How many RRBs showed improvement in profitability measured by return on assets during FY2024?

10 Signup and view all the answers

What significant measure did the 'RRBs in Focus' mechanism signal to RRBs?

To initiate remedial measures to avoid further deterioration. Signup and view all the answers

What was the total profit of Recap RRBs on 31 March 2023?

1,205 crore Signup and view all the answers

How many RRBs had a CRAR less than 9% on 31 March 2021?

8 Signup and view all the answers

What was the net profit/loss of RRBs for the period ending 31 March 2022?

897 crore loss Signup and view all the answers

What was the total profit making RRBs on 31 March 2024?

7,796 crore Signup and view all the answers

What was the total loss of Non Recap RRBs in 31 March 2023?

1,682 crore Signup and view all the answers

What was the highest CRAR percentage recorded among RRBs on 31 March 2024?

16.6% Signup and view all the answers

What was the reported profit/loss for RRBs for the period ending 31 March 2021?

2,208 crore loss Signup and view all the answers

What is the approximate total loss of Recap RRBs for the period of 31 March 2022?

4,974 crore Signup and view all the answers

Which year saw the lowest total profit among the RRBs?

2021 Signup and view all the answers

What was the total number of profit making RRBs reported?

Five Signup and view all the answers

Study Notes

Overview of Regional Rural Banks (RRBs) as of March 31, 2024

Total of 43 RRBs sponsored by 12 Scheduled Commercial Banks (SCBs).
Operate 22,069 branches across 700 districts.
Service 31.3 crore deposit accounts and 3 crore loan accounts.
Geographical reach includes 26 states and 3 Union Territories (Puducherry, Jammu & Kashmir, Ladakh).

RRBs hold a 14% share in total bank branches and a dominant 30% share in rural bank branches.
A significant 92% of RRB branches are located in rural or semi-urban areas.
Total deposits for RRBs amount to ₹6.6 lakh crore with ₹4.7 lakh crore in advances.
RRBs account for a 3.2% share of total bank deposits and a 2.9% share of advances in the banking sector.

Financial Performance and Profitability

The number of loss-making RRBs decreased from 18 in FY2020 to just 3 in FY2024.
Profitability has improved, with 37 RRBs reporting profits in FY2023 and 32 showing increased net profits in FY2024.
Four previously loss-making RRBs returned to profit in FY2024, including Dakshin Bihar Gramin Bank and J&K Gramin Bank.
Two RRBs continue to face operational losses due to external disturbances: Ellaquai Dehati Bank and Manipur Rural Bank.

Improvements in Financial Health

Gross Non-Performing Assets (GNPA) levels improved in both absolute and percentage terms for the majority of RRBs during FY2024.
All RRBs successfully met regulatory targets set by the Reserve Bank of India (RBI) under Priority Sector Lending guidelines.
Key financial performance indicators showcase pronounced improvements, reflecting effective management and corrective measures.

Government Initiatives and Programs

RRBs play a vital role in executing flagship government schemes like PMJDY, Suraksha Bima Yojana, Jeevan Jyoti Bima Yojana, and Atal Pension Yojana.
In response to financial challenges, the RBI increased the bulk deposit limit for RRBs to ₹1 crore as of October 26, 2023.

Capacity Building and Support Initiatives

NABARD continues to provide support for RRBs identified as ‘in focus’ for financial guidance and sustainability enhancement.
15 RRBs were classified as ‘in focus’ in FY2024, indicating a slight improvement from the previous year.
Workshops and seminars held to foster knowledge and skill development among RRB chairpersons, focusing on financial sustainability, MSME lending, and leveraging technology.

Recent Workshops and Events

A symposium on strengthening financial sustainability for RRBs held on May 11-12, 2023.
A workshop on MSME lending policies conducted on January 4, 2024.
A session on utilizing the Account Aggregator framework for business growth organized on March 15, 2024, presented by industry experts.

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Description

This quiz provides an in-depth overview of Regional Rural Banks (RRBs) as of March 31, 2024. It covers key statistics on their operations, market share, and financial performance. Test your knowledge on the role of RRBs in the banking sector and their impact on rural economies.