India still is a developing country. Many rural areas are still not so familiar with the development and new things. The government keeps coming up with ideal strategies so that rural areas can also grow so fast. RRB also called Regional Rural Banking is one of the parts of that strategy. Let’s understand how it is putting more effort into developing banking habits among people living in rural areas.
Significance Of Regional Rural Banks –
The motto of regional rural banks is reducing the gap between resources as well as services to rural regions. People living in rural areas are not well educated. They have financial requirements but they can approach well-established or large banks. In this context, RRB banks play an important role. They help them in various ways. They also guide them and impart them the best service to grow in business.
RRB plays a major role to carve out an ideal way in the context of inclusion of the marginal populations such as BPL farmers, small entrepreneurs, and women, and so on. They do not hesitate while approaching RRB banks since the staff also handle them cordially. Regional rural banks RRB are known for imparting short-term loans, different types of insurance facilities accordingly so that people living in rural areas can be encouraged to do entrepreneurship.
These banks are known for imparting assistance such as advances, insurance, loans, etc., play a major role in the context of fostering the growth of agriculture as well as the advancement of farmers indeed. There are many public as well as private sectors that do not prefer to deal with farmers as well as the rural section because of their small financial requirement, fewer incomes, and so on. These people also are not hesitant to share their finance-related requirements or advice since they know that they would be getting the best advice from here. There is a requirement regarding a spate banking system in order to protect the interest of these sectors.
The RRBs go-ahead to cover underserved rural areas in the context of financial services as well as extending credit assistance indeed. It plays a major role in the growth of cooperative societies, agriculture, and so on. Because of RRB, it becomes possible to mitigate the farmer’s and the weaker sections’ dependence on different traditional sources such as money lenders who tend to exploit them by charging a high rate of interest on loans. It could be said that RRB is an ideal example in the context of Development Banks in India.
The objective of a rural bank does not end here. To impart cheap as well as liberal credit facilities, these banks are considered the best in rural areas. It does not matter if one is a small farmer, artisan, small entrepreneurs, or coming from any other weaker sections, RRB is available to serve everyone. The best thing about RRB is that it helps the rural poor from moneylenders. People living in rural areas are not smart enough. They are not well educated. Moneylenders can easily fool them and put them in finance-related trouble. RRB does not let it happen since they give them ideal finance service to survive better indeed.
The best thing is that they do portray a role like a catalyst element and that is why they always put the best efforts in the context of enhancing the economic growth in a specific area. They also play a major role in the context of cultivating banking-related habits among the rural people who generally do not go along with thinking these things would be tricky or complicated. But RRB play a major role to make it easy for them
The importance of RRB cannot be denied indeed. It plays a major role in encouraging people living in rural areas to get familiar with banking habits. They get to know how banks could be helpful for them to manage their finances indeed.