Premium Essay

Regional Banks

In: Business and Management

Submitted By sisyaa
Words 987
Pages 4
The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs) on the ground that they would be much better suited than the commercial banks or co-operative banks in meeting the needs of rural areas. Accepting the recommendations of the Narasimham committee, the government passed the Regional Rural Banks Act, 1976. A significant development in the field of banking during 1976 was the establishment of 19 Regional Rural Banks (RRBs) under the Regional Rural Banks Act‚1976.
The RRBs were established “with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto” . * Objective * Functions * Regional Rural Banks in India * Regional Rural Banks in Tamil Nadu

RRBs established with the explicit objective of
* Bridging the credit gap in rural areas * Check the outflow of rural deposits to urban areas * Reduce regional imbalances and increase rural employment generation
The main objectives of setting up the RRB is to provide credit and other facilities‚ especially to the small and marginal farmers‚ agricultural labourers artisans and small entrepreneurs in rural areas.
Each RRB will operate within the local limits specified by notification.
If necessary‚ a RRB will also establish branches or agencies at places notified by the Government.
Each RRB is sponsored by a public sector bank‚ which provides assistance in several ways‚ viz., subscription to its share capital‚ provision of such managerial and financial assistance as may be mutually agreed upon and help the...

Similar Documents

Premium Essay

Regional Rural Banks

...INTRODUCTION The Regional Rural Banks (RRBs) were established in 1976 under Regional Rural Banks Act, 1976. RRBs are an integral part of rural credit system and are expected to play an increasingly important role in the development of, particularly, rural areas. RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27 scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is shared by the owners in the proportion of 50%, 15% and 35% respectively. It is important that the RRBs function in a highly professional manner, embracing the technological advancements. The Government of India had taken a number of steps, including recapitalization support from time to time, to improve the functioning of the RRBs and their financial health. Considering the tremendous potential, due to their presence throughout the country, Government of India has initiated the process of restructuring of RRBs to improve their functioning, achieve the economics of scale and to ensure better managerial control. As a result the total number of RRBs, as on 31 March 2011, stood at 82. With a view to modernize and strengthen the technology up gradation and functioning of RRBs to compete and play a more meaningful role in the financial services sector RRBs are required to roll out Core Banking Solution (CBS) and their banking operations need to be functionally integrated with their sponsor banks. PERFORMANCE OF RRBs AS ON 31 MARCH, 2011 The...

Words: 776 - Pages: 4

Free Essay

Micro Strategies’ Document Management Solutions for Regional Banks

...Micro Strategies’ Document Management Solutions for Regional Banks meet the unique requirements and challenges of the Banking Industry. Regional Banks continue to look for ways to cost effectively process inbound paper and electronic documents. These firms are also looking to manage the access, control, and use of documents created and stored within numerous repositories throughout their organization. Regional Banking industry trends, including consolidations and the desire to centralize operational functions, have forced many financial institutions to seek ways to reign in the costs and inefficiencies associated with disparate document processes. Micro Strategies provides customers with the insight, industry awareness, and technical expertise necessary to design and implement efficient document processing solutions for all types of simple and complex business workflows specific to regional banks. Whether the system is to be used to address a single departmental need or as a firm-wide content management platform – addressing both individual line of business (LOB) requirements and document management needs across the organization – Micro Strategies offers targeted and scalable solutions built on industry leading technology. Reduce cost of operations with improved document processing Increase efficiency allowing less staff to manage increasing number of documents Faster processing of customer documents for new account openings Improve customer service with......

Words: 600 - Pages: 3

Premium Essay

Bus 640

...Choose one of the following three industries (NOT specific companies) for analysis: . Airlines (carriers) . Automobiles . Personal computers. RATE (not Rank) the global importance of each of Porter’s five industry forces on a scale of 1 to 5 (1 = Low, 5 = High), and provide at least two reasons for each rating. In addition, list at least three industries that complement the industry you choose. (30 points) Airlines Industry 1. Oil Service Industry- Fuel airplanes, and shuttle-bus. 2. Banking Industry- Some airline have their own credit union and others rely on banks for reward sky miles. 3. Insurance Industry- Employee insurance. Rate 4 Threats of New Entrants.  At first glance, you might think that the airline industry is pretty tough to break into, but don't be fooled. You'll need to look at whether there are substantial costs to access bank loans and credit. If borrowing is cheap, then the likelihood of more airliners entering the industry is higher. The more new airlines that enter the market, the more saturated it becomes for everyone. Brand name recognition and frequent fliers point also play a role in the airline industry. An airline with a strong brand name and incentives can often lure a customer even if its prices are higher (Investopedia, 2012). Rate 4 Powers of Suppliers. The airline supply business is mainly dominated by Boeing and Airbus. For this reason, there isn't a lot of cutthroat competition among......

Words: 1005 - Pages: 5

Free Essay


...Globalization and me: what impacts could it be? According to Word Power Dictionary, globalization comes from word globalize which means develop (business, society, etc.) so as to make international influence or action possible. Other than that, globalization can be define as the increasing connectivity and interdependence of the world’s economies, societies, and cultures because of advances in communications, technology, trade, international investment movement of currency, and migration. In my opinion, technology is the big roles or function that brings the globalization. Same as Kenichi Ohmea words, globalization as a borderless world seeks to change the world into a single unit only. This process is easier with the advances in communication technology. There are numerous ways in which globalization has impacted the world. The globalization has impacted on education, economic, culture, language, food and others. Globalization also means the phenomenon that makes the world seem smaller in terms of human relations due to the speed of development of information technology. Human easily get information and difficult to filter the negative elements that permeate the hearts and minds. Some terms such as “borderless worlds” and “open skies” make such as trade, the development of political and economic power towards the development of civilization. Education is the process of receiving and giving systematic instruction, especially at school and university. There are positive......

Words: 2004 - Pages: 9

Premium Essay


...recent years there has been an industry-wide shakedown will have far-reaching effects on the industry’s trend towards expanding domestic and international services. Originally, the airline industry was either partly or wholly government owned. This is still true in many countries, but in the United States all major airlines are private. This airline industry is classified into four categories by the Department of Transportation (DOT): International - 130+ seat planes that have the ability to take passengers just about anywhere in the world. Companies in this category typically have annual revenue of $1 Billion or more. National - usually these airlines seat 100-150 people and have revenues between $100 million and $1 billion. Regional - companies with revenues less than $100 million that focus on short-haul flights. Cargo - these are airlines whose main purpose is to transport goods. Airport capacity, route structures, technology, and costs to lease or buy the physical aircraft are significant in the airline industry. Other large issues are: Weather - The problem is that weather is variable and unpredictable. Extreme heat, cold, fog, and snow...

Words: 1262 - Pages: 6

Premium Essay

Web-Based Sales and Airline Industry

...Impact of web-based Sales on the airline industry | AbstractExpedia, Travelocity, Priceline, and Orbitz: examples of how the travel industry in general, but more importantly the airline industry, has taken a deeper turn towards the low cost affair that consumers have tried to accomplish with that specific industry for many years now. It is a proven fact that the competitive advantage has been taken away from the airlines as consumers have much of the information required at their fingertips on the web at all times.Javier Alfonso FIN6644 - Global Financial Strategy for Professor Krishnan Dandapani | Impact of web-based Sales on the airline industry | AbstractExpedia, Travelocity, Priceline, and Orbitz: examples of how the travel industry in general, but more importantly the airline industry, has taken a deeper turn towards the low cost affair that consumers have tried to accomplish with that specific industry for many years now. It is a proven fact that the competitive advantage has been taken away from the airlines as consumers have much of the information required at their fingertips on the web at all times.Javier Alfonso FIN6644 - Global Financial Strategy for Professor Krishnan Dandapani | Table of Contents Introduction 2 History of AMR 4 Financial Analysis of the Airline Industry 5 History of Expedia 8 Financial Analysis for Expedia, Inc. 9 Comparison of Both Businesses and Their Industries 13 Conclusion 15 Introduction The......

Words: 6330 - Pages: 26

Free Essay

Microbrewing in the Us

...University of New Hampshire University of New Hampshire Scholars' Repository Honors Theses Student Scholarship Spring 2012 Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success Kevin Lapoint University of New Hampshire - Main Campus Follow this and additional works at: Part of the Entrepreneurial and Small Business Operations Commons Recommended Citation Lapoint, Kevin, "Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success" (2012). Honors Theses. Paper 9. This Senior Honors Thesis is brought to you for free and open access by the Student Scholarship at University of New Hampshire Scholars' Repository. It has been accepted for inclusion in Honors Theses by an authorized administrator of University of New Hampshire Scholars' Repository. For more information, please contact Microbrewing in the US An Overview of the Microbrewery Industry and a Business Plan for Future Success Kevin Lapoint Business Administration, Finance and Management Whittemore School of Business & Economics (603) 988-3438 Advisor: Prof. Fiona Wilson Whittemore School of Business & Economics 5/5/2012 Kevin Lapoint Microbrewing in the US Acknowledgements I would like to thank my brother Douglas, my mother and father, and especially my brother Richard. Without their support, edits,......

Words: 23149 - Pages: 93

Free Essay

Econ Oligopoly, Government Regulations, Externalities, Profits

...AMR Faces $162 Million in Penalties: WSJ Tues. Aug. 7 2012 Pg. B3 Key Terms: Oligopoly, Government Regulations, Externalities, Profits One could argue that one of the worst feelings in the world is that sinking sensation when you find out that your flight is delayed. Often times, you will see your plane sitting at the gate, so what are they doing out there? Odds are the answer to this question is maintenance. Maintaining a fleet of planes is a huge cost to the airline industry and it’s a cost that the airlines are willing to skip out on if they can in order to maximize profits. The airline industry is an oligopoly. This is to say, there are limited number of firms in a market supplying the same good. In this model, firms are really sensitive to what each other are doing. Each one is trying to get a leg up on the other and if saving a bit of money on maintenance means your firm can keep up with the next airline that lowers its prices, they will do just that. Enter the FAA. The Federal Aviation Administration is a governmental organization designed to monitor and regulate the airline industry, all for the benefits of the taxpayer of course. The FAA wants to hit AMR Corp., the parent company of American airlines, with $162 million dollars in fines for violations concerning maintenance. These fines seem hefty and would lead one to believe that AMR Corp. is putting an unsafe product in the air. The scope of their......

Words: 446 - Pages: 2

Free Essay

Skywest and the Regional Airline Industry

...SkyWest and the Regional Airline Industry Webster University MNGT 6000 15 November 2012 Table of Contents History: Page 3 Company Introduction & Products Page 3-5 Company S.W.O.T. analysis Page 5-8 Company Strategy/Goal/Vision/Recommendation Page 8-11 To be competitive in today’s airline industry, airlines face an increasing number of social and economic challenges. Inflation, a slumping economy, high fuel prices, and high unemployment all serve to add to consumer uncertainty toward the future. Taking this into consideration, there is perhaps no other industry directly impacted by these issues than the airline industry. With high unemployment and a recessive economy, families cannot afford to take vacations that require flying. Businesses that are hurting financially will use other means, (such as Teleconferencing) to coordinate nationally and internationally instead of flying. Today, many consumer attitudes towards the entire flying experience range from a necessary nuisance to a nightmare. Flying today in the post 9-11 world, has become an unpleasant experience to say the least. From check-in to baggage pick...

Words: 2806 - Pages: 12

Premium Essay

Merger and Acquisition

...Business 499 Prof. Rufus Robinson Assignment 4: Merger, Acquisition, and International Strategies February 27, 2014 The two companies that I chose to research that has aq are American Airlines and US Airways. On January 7, 2014 both airline announced the $17 billion merger that created the world’s largest airline, which is a position that American Airlines once held years ago until a wave of mergers and consolidations in the airline industry over the past few years. It plans to operate nearly 6,700 daily flights to more than 330 destinations in more than 50 countries. The strategy that led US Airways and American Airlines to merge was one of mutual benefit. In 2012, US Airways expressed interest in taking over AMR Corporation, which is the parent company of American Airlines. In March, AMR’s CEO Tom Horton said that the company was open to a merger. Under Chapter 11 bankruptcy protection, American Airlines had been looking to merge with another airline. In my opinion, I believe that this merger was a wise choice because the merger could possibly yield more than $1.5 billion a year in added revenue and cost savings to the airline. Stakeholders of AMR would own 72% of the company and US Airways would own the remaining 28%. Both airlines stated that there would be no lay-offs and have the major support of several labor groups that faced an uncertain future after AMR Corporation filed for bankruptcy in 2011. Shares of the combined company rose from 2.7% to $24.60......

Words: 346 - Pages: 2

Free Essay

Accreditation Summary: Marvin Stevenson

...Morehead State University | Accreditation and Evaluation Summary | IMS 421 | Marvin Stevenson 1-28-2015 | 1. Differentiate between programmatic and institutional accreditation. Continuing one’s education above the high school is an important decision and a life changing event. Therefore attending a college that offers accredited degrees can make a huge difference in a person’s future. A college program that is not accredited can mean, you are not eligible for federal financial aid, may not be able to transfer credits to another college or university, and you may not be able to attain an appropriate professional licensure in your field. This is why it is important for students to be aware of the type of accreditation offered by schools or the lack of accreditation missing by them. Therefore it is important to know the difference be the two types of accreditations. An institutional accredited program achieves its accreditation through representatives from dedicated accrediting institutions evaluate colleges and universities. This is a means for colleges and universities to assess their own performance and compare themselves to other schools. Before being granted institutional accreditation status, all aspects of a college or university are evaluated. If a school is awarded accreditation means that the institution meets certain standards of educational quality. In addition, institutional accreditation is more comprehensive and indicates that the institution...

Words: 1499 - Pages: 6

Premium Essay

Mar-301 Wa1 Porter's Five Forces Model

...| | Written Assignment 1 Frantisek Dzuno 2012-10-MAR-301 Part A Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter's Five Forces Model to discuss that industry's competitive forces and their relative influence. The domestic airline industry has generally been characterized by very high competition and low profit margins. To understand the position of the economic climate in this environment, an examination of Porter’s Five Forces could be used to obtain a better picture of these factors’ within the airline industry. New entrants are usually blocked by the cost or difficulty if entering a market (Boone & Kurtz , 41). The airline industry is a typical case when the extremely high initial cost is the main barrier for new entities - entrants. The investment to build, purchase or rent airplane is enormous. Employees such as pilots and maintenance technicians are expensive to pay. The training efforts are extremely high. Security, safety requirements are heavy regulated. Another important factor which creates a challenge for new entrants to enter the airline market is the brand identity. Airlines with a long history in the industry have created a strong relationship with their loyal customers based on safety records as well as the discount programs they offer (frequent flyer programs, business members) The Power of Suppliers within the airline industry is very low. The main factor relating to the bargaining......

Words: 1599 - Pages: 7

Free Essay


...Accreditation in Distance Education Katrina Dixon Spring 2012 Choosing the appropriate school for Higher Education is a major decision that all students must face. The world of accreditation is slowly changing, generally in the direction of dealing more with outcomes: how schools teach or train their students and how well the students perform (Bear, Nixon 2006, 37) Making sure that the school has the courses they desire, flexibility and if it is affordable to them are all issues that must be looked at but the most important aspect of the decision is finding out about the school’s accreditation. Accreditation is a validation process by which institutions of higher education are evaluated against established standards to ensure a high level of educational quality. Knowing the accreditation status of the school that you have chosen for your Higher Education is very important because the school’s accreditation can determine how usable a degree is once it is obtained. This paper will discuss accreditation in depth and what it means to distance education. Researching an institution accreditation can be tedious but it is necessary to have this knowledge. Asking college officials and current students is one way to gather information but a prospective student should also look for other signs that the institution is credible. One of the best indicators for quality of an institution is recognition from nationally recognized professional organizations. ...

Words: 4072 - Pages: 17

Free Essay


...Justin Flatt Mgmt. 439.01 March 8, 2012 Case Study #3 SkyWest, Inc., and the Regional Airline Industry in 2009 Situation: The regional airline industry specializes in short-haul flights that operate to serve as feeder airlines transporting passengers to and from major hub airports that have larger aircraft and the ability to cover a larger geographical area. Regional airlines partner with major airlines to create an efficient hub and spoke system. Major carriers pay regional airlines a fee for every departure. This allows regional airlines to develop a customer base and establish a revenue stream. Regional airlines are controlled by or have contracts with major carriers to secure flights but because one cannot exist with the other, the relationship between regional and major airlines is reciprocal and necessary for the success of both entities. Complication: Since 2001, SkyWest, Inc. has been struggling to maintain their string of success. SkyWest was adamant on acquiring new contracts with major carriers, but would have to overcome the external situations to achieve this growth. During this time, it was difficult for SkyWest to develop and maintain high levels of customer service, develop and maintain a strong safety image, maximize on-time arrivals, and acquire new aircraft. Before SkyWest could compete with existing contracts and competitors, it first had to prevail over external factors in the industry to achieve the requisites for acquiring new contracts. Table 1......

Words: 1013 - Pages: 5

Free Essay

Sharing Power? Prospects for a U.S. Concert-Balance Strategy

...the U.S. to build a “multi-partner” system for governments and nongovernment groups to work together on global issues. This is the goal of the Obama Administration in an effort to reduce competition and have closer ties to the major global powers. There are limited options for other countries to take over as a global hegemon. Unlike other countries, India may be the closest to becoming the next hegemon of the global system; however, it is not ready based on its structural problems and military capabilities. With the rise of China, the structure of the world order could change in the next decade. The emergence of China as a world power has increased its profile in the international arena.1 The Chinese economy is not only linked to regional and world stability, but its relation to its military will determine whether or not the U.S....

Words: 840 - Pages: 4