Economics • Banking & FinanceEasy
What is the primary function of the Chhattisgarh Rajya Gramin Bank operating within the state's rural financial architecture?
A. To provide institutional credit and banking services to small farmers, artisans, and rural workers✓ Correct Answer
B. To formulate monetary policy interest rates for commercial banks across India
C. To regulate foreign exchange transactions and maintain exchange rate stability nationally
D. To underwrite corporate equity shares on the Bombay Stock Exchange
💡 Solution & Explanation
Regional Rural Banks like Chhattisgarh Rajya Gramin Bank are established under statutory provisions to bridge credit gaps in rural areas, catering specifically to small and marginal farmers, agricultural labourers, and rural artisans. They mobilize local savings and channel them into productive rural investments. Their network penetrates remote tribal and agrarian pockets where commercial bank presence is limited.
More Economics Banking & Finance questions
- What is the function of the 'Standing Deposit Facility (SDF)' introduced by the RBI?
- Which institution serves as the central banking authority of India, responsible for issuing currency and…
- What does the term 'Basel Norms' refer to in international banking?
- What does the term 'Liquidity Coverage Ratio (LCR)' under Basel III standards require banks to maintain?
- What does the term 'Repo Rate' signify in the monetary policy framework of the Reserve Bank of India?