REGIONAL RURAL BANKS (RRBs) (Syllabus: GS Paper 3 – Economy)

Context: Despite being exempted from the Competition Commission of India (CCI), the merger of regional rural banks (RRBs) is unlikely to occur in the current financial year (2023-24), with the recent focus shifting towards reforming the RRBs instead.

Regional Rural Banks (RRBs)

• About: This is a government owned scheduled commercial bank of India that operates at regional level in different states of India.
• Establishment: 26 September 1975 and the RRB Act 1976
• Nodal Ministry: Ministry of Finance
• Five RRBs: Set up on 2 October 1975 on the recommendations of the Narsimha Committee.
• Ownership: Central government, state government, and the sponsoring bank with 50%, 15%, and 35% shareholding respectively.
• First RRBs Bank: Prathama Bank, Uttar Pradesh .

Competition Commission of India (CCI)

• About: The commission is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases.
• Establishment: Competition law under the Competition Act, 2002.
• Nodal Ministry: Ministry of Corporate Affairs.
• Composition: One Chairperson and six Members who shall be appointed by the Central Government.