Parikalpana: KIIT Journal of Management

Jitendra Kumar Ram ¹

Affiliations
1 School of Management, KIIT University, Bhubaneswar, IN

Abstract

Regional Rural Banks (RRBs), now spread all over India, play an important role in the all round rural development of the nation, and also for the financial-inclusion mission. To strengthen the functioning of these RRBs further, many committees have given suggestions, for major reforms, including amalgamation. As considerable time and effort have been given on this reforms-measure, time has come to check whether 'amalgamation' of RRBs has helped improving service-quality?

The present paper reviews the growth of Indian banking sector and, particularly the Regional Rural Banks (RRBs) of Odisha. The paper uses both secondary and primary data to study and check, whether there has been any significant improvement in functioning of RRBs, in the state of Odisha.

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Jitendra Kumar Ram

Abstract

Regional Rural Banks (RRBs) form an integral part of the Indian banking system. Though, like any other commercial banks, they were set up to provide banking services to the people, unlike other banks which were handicapped by urbanite culture, Regional Rural Banks were conceptualised as a bank „by the rural people, for the rural people and of the rural people . Service, not the profit, was the motto. But any financial organisation needs to be self-sustaining to flourish and to achieve its social goals. As a part of many reforms measures, to strengthen the RRBs, the Government of India initiated the process of amalgamation in 2005, among the RRBs operating in a state and sponsored by the same commercial bank. As a result of this, the number of RRBs which stood at 196 in March, 2005 reduced to 82 in March, 2010.

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