Regional Rural Banks (RRBs) in India were established primarily on the recommendations of which committee?
- Narasimham Committee
- Rangarajan Committee
- Shivaraman Committee
- Urjit Patel Committee
Answer: Narasimham Committee
The Narasimham Working Group (1975) recommended the creation of RRBs to bridge the credit gap in rural areas. They operate with a local orientation and lower cost structure, with their equity jointly held by the Government of India (50%), the concerned State Government (15%), and the Sponsor Bank (35%).