Short notes on Regional Banking

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Small traders, Village artisans, agricultural labourers, etc. in rural and semi-urban ar­eas do not get adequate credit facilities from Commercial banks since these banks are gener­ally looking for large borrowers engaged in commercial/business activities.

This type of banking leaves the rural areas undeveloped economically. In order to provide adequate and timely credits to small borrowers in rural and semi-urban areas, Central Government set up Regional Banks, known as Regional Rural Banks all over India jointly with State Governments and some Commercial Banks. As they are permitted to operate in particular region, it may help develop the regional economy.

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