The Regional Rural Banks Act, 1976

The Regional Rural Banks Act, 1976 was enacted with the objective of providing banking facilities to rural areas of India. The Act provides for the incorporation, regulation, and winding up of Regional Rural Banks (RRBs). RRBs are established with the main objective of providing credit and other banking facilities to rural areas. The Act specifies the minimum and maximum capital requirements for RRBs and also lays down the procedure for their formation, management, and functioning. The Act also provides for the appointment of a Board of Directors and the Chairman of the RRBs, as well as the powers and functions of the Board. The Act also lays down the regulatory framework for RRBs and provides for the supervision and inspection of these banks by the National Bank for Agriculture and Rural Development (NABARD) and the Reserve Bank of India (RBI).