C. Rangarajan calls fewer regional rural banks ‘a step in the wrong direction’
Former RBI Governor C. Rangarajan described the reduction in the number of regional rural banks (RRBs) as a step in the wrong direction, warning that consolidation risks eroding their local character. He said 11 small finance banks will not meet the sector’s unmet credit needs and urged the RBI to incentivise small finance banks (SFBs) to expand rural and priority-sector lending.
Nabka Insight
RRB consolidation and small finance banks are central to banking-awareness and financial-inclusion questions.
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- C. Rangarajan is a former RBI Governor.
- He called fewer regional rural banks (RRBs) a step in the wrong direction.
- He warned consolidation risks eroding RRBs’ local character.
- He said 11 small finance banks will not meet the sector’s unmet credit needs.
Background
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