Regional Rural Banks

•RBs are oriented towards meeting the needs of the weaker sections of the rural population •RRBs are expected to make credit available to rural households •To take the banking services to the doorstep of rural masses

• To mobilize rural savings and channelize them for supporting productive activities in rural areas • To create a supplementary channel for the flow the central money market to the rural areas through refinance • To generate employment opportunities in rural areas and bringing down the cost of providing credit to rural areas .

Impact of NPA on RRB • • • • Results in reduced income Difficulty in augmenting capital resources Increase in carrying cost of non-income yield Declined credit rating and reputation of the bank • Reduction of faith among general masses. .

Management of NPA 1)Preventive strategies • Amendment of laws • Detailed credit worthiness appraisal and monitoring • Other important preventive strategies 2) Curative strategies .

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