PACS and RRBs: Financial Assistance Quiz

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Questions and Answers

What was the CRAR percentage for non-recap RRBs as of March 2023?

13.4%

How much profit did RRBs report in March 2021?

7,796 crore

What was the net loss recorded by RRBs?

-2,208 crore

Compare the total profit of RRBs in March 2022 to that of March 2023.

Total profit decreased from 4,974 crore in March 2022 to 1,205 crore in March 2023. Signup and view all the answers

What was the CRAR percentage for recap RRBs as of March 2024?

9.8% Signup and view all the answers

How many RRBs were making a profit as of March 2024?

The number of profit-making RRBs is not specified in the given data. Signup and view all the answers

What was the total loss reported by RRBs in March 2022?

3,219 crore Signup and view all the answers

As of March 2023, what was the CRAR for the total RRBs?

13.7% Signup and view all the answers

What trend can be observed in RRB profits from March 2021 to March 2023?

There is a decreasing trend in profits from 7,796 crore in March 2021 to 1,205 crore in March 2023. Signup and view all the answers

What types of assistance can PACS receive under the transformation scheme into multi-service centres?

PACS can receive assistance for project preparation, exposure visits, capacity building of functionaries, documentation, and technology adoption. Signup and view all the answers

How much of NABARD’s share is allocated specifically for the development and maintenance of National Level PACS Software?

₹236.5 crore is allocated for the development and maintenance of National Level PACS Software. Signup and view all the answers

What financial support has been sanctioned to states other than Assam for PACS?

All states except Assam have been sanctioned grant support of up to ₹100 lakh each. Signup and view all the answers

What is the total amount sanctioned to StCBs as of 31 March 2024?

An amount of ₹870.1 lakh has been sanctioned to StCBs as of 31 March 2024. Signup and view all the answers

What is the purpose of Regional Rural Banks (RRBs)?

RRBs were established to secure credit flow to small and marginal farmers, agricultural labourers, artisans, and weaker sections of society. Signup and view all the answers

Which states are included in the Comprehensive Support Plan for capacity-building efforts?

The Comprehensive Support Plan is available for North-Eastern States, including Sikkim, Andaman & Nicobar Islands, and Jammu & Kashmir. Signup and view all the answers

What is the allocated amount for the training of stakeholders in the PACS computerisation project?

₹15.5 crore is allocated for the training of stakeholders in the PACS computerisation project. Signup and view all the answers

What is the importance of capacity-building efforts in the context of PACS?

Capacity-building efforts enhance the operational effectiveness and service delivery of PACS. Signup and view all the answers

What is the percentage range of RRBs' share in the implementation of schemes compared to their total business share?

16% to 19% Signup and view all the answers

What is the average deposit amount per PMJDY account in RRBs?

₹4,292 Signup and view all the answers

Which digital services are emphasized for rolling out in RRBs?

14 customer-centric digital services. Signup and view all the answers

Name one of the bank-centric digital upgrades being implemented in RRBs.

CBS upgrade Signup and view all the answers

Who chaired the meetings to review the functioning of RRBs focusing on technology upgrades?

The Union Minister of Finance. Signup and view all the answers

What does BHIM UPI stand for in the context of digital services provided by RRBs?

Bharat Interface for Money Unified Payments Interface. Signup and view all the answers

By how much did the share of RRBs in scheme implementation increase during FY2024?

Due to higher growth in enrolments. Signup and view all the answers

What type of banking services are included in the 14 customer-centric digital services?

Internet banking, mobile banking, and UPI. Signup and view all the answers

What is the role of technology upgrades in the RRBs according to the report?

To enhance efficiency in operations. Signup and view all the answers

How many digital services were provided by RRBs as of March 2024?

The numbers vary significantly, with particular emphasis on several key services. Signup and view all the answers

How does NABARD plan to support the viability of RRBs?

NABARD will closely monitor the viability plans of RRBs and facilitate technology adoption to enhance service offerings. Signup and view all the answers

What intervention does NABARD support in improving the skills of personnel in cooperatives and RRBs?

NABARD focuses on improving the skill base of personnel through various capacity-building initiatives. Signup and view all the answers

What are the criteria for categorizing RRBs as 'RRBs in focus'?

RRBs are categorized as 'RRBs in focus' if their CRAR is less than 10%, GNPA is greater than or equal to 10%, or RoA is less than 0% for two consecutive years. Signup and view all the answers

Describe the role of PACS Development Cells as mentioned in the document.

PACS Development Cells assist STCCS in business diversification and implementing revised scheme guidelines under CDF assistance. Signup and view all the answers

What technological initiatives is NABARD emphasizing for RRBs and RCBs?

NABARD is promoting the adoption of best-in-class banking-centric and customer-centric digital services. Signup and view all the answers

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

43 RRBs were operational as of 31 March 2024. Signup and view all the answers

What was the total number of deposit accounts held by RRBs on 31 March 2024?

RRBs had 31.3 crore deposit accounts. Signup and view all the answers

Calculate the percentage share of RRBs in the total deposit amount among all banks.

RRBs had a 3.2% share in the total deposit amount among all banks. Signup and view all the answers

As of 31 March 2024, how many loan accounts were associated with RRBs?

RRBs had 3 crore loan accounts. Signup and view all the answers

What was the share of RRBs in loan accounts among all banks?

RRBs had an 8% share in loan accounts among all banks. Signup and view all the answers

In how many states and Union Territories did RRBs operate as of the stated date?

RRBs operated in 26 states and 3 Union Territories. Signup and view all the answers

What percentage of RRB branches are located in rural or semi-urban areas?

92% of RRB branches are located in rural or semi-urban areas. Signup and view all the answers

What is the total number of branches operated by RRBs as of 31 March 2024?

RRBs operated a total of 22,069 branches. Signup and view all the answers

What was the percentage share of RRBs in deposit accounts against all banks?

RRBs had a 13.7% share in deposit accounts among all banks. Signup and view all the answers

What is the total amount of deposits held by RRBs?

RRBs held 6.6 lakh crore in deposits. Signup and view all the answers

Study Notes

Transformation of PACS

PACS (Primary Agricultural Credit Societies) can receive financial assistance on a reimbursement basis for various development measures such as project preparation and technology adoption.
NABARD allocated ₹252 crore for the computerization of PACS, which includes ₹236.5 crore for National Level PACS Software and ₹15.5 crore for training stakeholders.
A Comprehensive Support Plan is available for capacity building and infrastructural support in North-Eastern states, Andaman & Nicobar Islands, and Jammu & Kashmir.
Except for Assam, all other states have been sanctioned grant support of up to ₹100 lakh each, with a total of ₹870.1 lakh sanctioned to StCBs as of 31 March 2024.

Regional Rural Banks (RRBs)

RRBs were established to enhance credit access for small farmers, agricultural laborers, artisans, and marginalized communities.
As of 31 March 2024, there are 43 RRBs across 22,069 branches, covering 31.3 crore deposit accounts and 3 crore loan accounts in 26 states and 3 Union Territories.
RRBs have 14% share of branches among all banks and 30% share in rural branches, with 92% of branches located in rural or semi-urban areas.
Deposits in RRBs total ₹6.6 lakh crore, with total advances amounting to ₹4.7 lakh crore; their shares in all bank deposits and advances are 3.2% and 2.9%, respectively.

Financial Performance of RRBs

Financial data shows RRBs' profit and loss trends from 31 March 2021 to 31 March 2024, with total profits and losses fluctuating significantly.
115 RRBs have reported profit/loss, with a notable loss of ₹2,208 crore recorded.
The share of RRBs in total business of scheduled commercial banks (SCBs) is only 3%, but their share in specific government schemes ranges between 16% to 19%.

Technology Advancements in RRBs

RRBs are focusing on technology upgrades, driven by government initiatives and regional reviews led by the Union Minister of Finance.
New digital services being implemented include mobile banking, internet banking, UPI, and video KYC services to improve service delivery.
The rollout of bank-centric upgrades like CBS (Core Banking Solutions) and NPA Management modules aims to enhance operational efficiency.

Customer-Centric Digital Services

RRBs are progressively adopting customer-centric services, with notable growth in mobile and internet banking usage from 31 March 2022 to 31 March 2024.
Continuous monitoring and facilitation by NABARD will ensure RRBs meet viability targets and embrace technological advancements, aiming for better service offerings and customer satisfaction.

Future Focus

NABARD aims to strengthen Personnel skills in cooperatives and RRBs while bolstering weaker StCBs and DCCBs through actionable strategies and turnaround plans.

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Description

Test your knowledge on the financial assistance mechanisms for Primary Agricultural Credit Societies (PACS) and Regional Rural Banks (RRBs). This quiz covers recent funding allocations, support plans, and the establishment of RRBs aimed at enhancing credit access for marginalized communities. Dive into the details of how these institutions contribute to agricultural development.