Economics • Banking & FinanceEasy
What is the primary role of Regional Rural Banks operating in the remote districts of Sikkim?
A. Providing international investment banking services for multinational corporations
B. Extending credit and banking facilities to small and marginal farmers and rural artisans✓ Correct Answer
C. Formulating monetary policy interest rates for the state
D. Regulating stock market trading activities across Gangtok
💡 Solution & Explanation
Regional Rural Banks were established under the Regional Rural Banks Act of 1975 to provide credit and banking services to small farmers, agricultural laborers, and rural artisans. They do not formulate monetary policy, which remains the exclusive domain of the central bank. Rural financial inclusion in Himalayan terrain relies heavily on these localized banking networks.
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