Consider the following statements regarding Regional Rural Banks (RRBs) in India:

1. Over 90% of RRB branches are located in rural and semi-urban areas.

2. Only half of the states in India have RRBs operating within them.

Which of the statements given above is/are correct?

The correct answer is option 1.

Key Points

• 92% of RRB branches are located in rural and semi-urban areas, reinforcing their role in rural financial inclusion. Hence, Statement 1 is correct.
• RRBs operate in 26 states and 3 Union Territories, meaning they cover a majority of Indian states, not just half. Hence, Statement 2 is incorrect.

Additional Information

• RRBs have 22,069 branches across 700 districts, accounting for 30% of all rural branches in India.
• They hold ₹6.6 lakh crore in deposits and ₹4.7 lakh crore in advances, contributing significantly to rural credit.
• RRBs play a crucial role in financial inclusion, agricultural lending, and MSME financing in underserved areas.