Which specific category of financial institutions in India is primarily established with the objective of providing credit and other facilities to small and marginal farmers, agricultural laborers, and rural artisans?

💡 Solution & Explanation

Regional Rural Banks were established under the Regional Rural Banks Act of 1976, following the recommendations of the Narshimham Working Group, to provide institutional credit to small farmers, agricultural laborers, and rural artisans. They combine the local feel of cooperative institutions with the business proficiency of commercial banks. These entities operate under joint ownership involving the central government, state governments, and sponsor banks.