Composition of Regional Rural Banks

Q.  Which of the following statements is/are correct about Regional Rural Banks (RRBs)?

1. RRBs were set up on recommendations of the Narasimham Working Group.
2. Union, state and sponsor bank holds equal stakes in RRBS.
- Published on 15 Dec 15

a. Only 1
b. Only 2
c. Both
d. None

ANSWER: Only 2
 
- According to RRB act 1976 share holding patten : Union (50%), state(15%) and sponsor bank(35%)
- By the amendment of 2014 RRB can issue shares in capital market to get more funds from private investors, but combined shareholding of Union, state, Sponser bank should not fall below 51%

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