JOB PROFILE OF RRB PO

 Branch Operations and customer service - managing all branch

operations such as cash deposit, cash withdrawal, cheque collections,
account opening, pension and salary payments, documentation
management, etc
 Loans for agriculture, micro-enterprises and retail - RRBs loan book is
75% priority sector loans. RRB PO will be doing field visits,
documentation, credit appraisal, loan recovery for the the retail and
agriculture loans (mostly Kisan Credit Cards)
 People management, MIS and miscellaneous - You being and officer
have to mange the clerical and other junior staff. Every branch and
department have several reports and data related work. Monthly,
quarterly MIS to be submitted.
 Public Communication – Communicating to the masses and spreading
the different policies and schemes to local people.
 Audit of the report – Maintaining the bank’s annual balance sheet and
access the annual reports of the bank. Creating the audit reports of the
financial year and tallying it with the last year’s report to check profit.

YE EXTRA HAI
The work profile of RRB Officer Scale-I simulates the job profile of a Probationary
Officer in any Public Sector Bank of India. Post your selection as Officer Scale-I in an
RRB, you will serve for a time period of 2 years (time period varies from bank to
bank) that is generally called as the probation period. After having completed the
probation period, you will be posted as Assistant Manager in some branch of the
Regional rural Bank you are working for. After the completion of the probation period,
the banks usually conduct an internal examination which may also vary from bank to
bank, getting through which one is assigned to the post of Assistant Manager.  An
Officer Scale-I in Regional Rural Bank can get a basic salary of Rs.35000 to
Rs.40000 along with other perks and benefits including housing allowance etc. 
Probationary Officers and Managers in banks and RRB are into customer dealing,
maintenance and supervising regular branch activities. The job role or work
responsibilities of an Officer (Scale-I) of a Regional Rural Bank includes looking into
public relations, monitor and regulate branch activities and tasks, address customer
related issues and grievances, approving and monitoring daily branch & customer
transactions and handling loan processing. 
Growth Opportunity: Once you are selected through this recruitment process and
you are working as an Assistant Manager, you get plenty of opportunities to grow in
your Regional Rural Bank. You will have a chance to get promoted to Manager after
completion of the 2 years’ Probation Period. Banks conduct exams on a regular
interval of time for the promotion of employees. Apart from promotions through
examinations, banks also promote their employees on the seniority basis.
STRUCTURE OF RRB

The management of a RRB is vested in a nine-member Board of Directors headed by

i. Chairman who is an officer deputed by a sponsor bank but appointed by the

Govt. of India.
ii. Three directors to be nominated the Central Govt.
iii. Two directors to be nominated by the concerned State Govt.

iv. Three directors to be nominated by the sponsor bank.

The sponsor bank, besides subscribing to the capital and deputing one of its official as
chairman, provides assistance to RRB in several ways such as financial accommodation,
deputing managerial and other staff and arranging the recruitment of staff and their
training.

 Capital Structure:
 The RRB Act empowers the Central Govt. to open the banks from time to time at
places where it may consider it necessary. A Regional Rural Bank is jointly owned by
the Govt. of India, the Government of concerned state and public sector bank, which
sponsored it. The authorised capital of each bank is Rs. 1 crore and the issued capital
is Rs. 25 lakhs; which is held by them in the proportion of 50, 15 and 35 per cent
respectively. Each bank carries the banking business within the local limits specified
by the Govt. notification.

NARSIMHAM COMMITTEE

The Committee mentioned three basic problems of RRBs:

(a) RRBs have a low earning capacity due to so many restrictions
placed on the business undertaken by these banks;

(b) With the recent award of a tribunal the wages and salary scales of
RRBs would be similar to that of commercial banks and thus the very
idea of low cost alternative to the operation of commercial bank has
been nullified; and

(c) The very area of operations of RRBs is also being utilised by the
sponsoring banks by running their own rural branches leading to
certain anomalies like duplication of services and expenditures on
control and administration.

RECAPITALIZATION REFORMS CONSOLIDATION

AMALGAMATION RESTRUCTURING

Objectives of Regional Rural Banks (RRB):

 To bridge the credit gap in rural regions in India.
 To check rural credit outflow to urban areas.
 To reduce regional imbalances in terms of availability of financial facilities.
 To increase rural employment generation.

 Priority Sector Lending : RBI mandates that all domestic Banks must ensure
that 40% of their loans and advances are given to the priority sector. Priority
sector comprises the areas of economy that require banking assistance but gets
neglected by banks due to various reasons.
 The Reserve Bank of India categorizes agriculture, retail trade, education,
housing and small business as Priority sector.

DIFFRENCES
RRBS AND COMMERCIAL BANKS

RRB also known as Regional Rural Bank and commercial banks performs quite similar
functions, however there is some difference between the two. Let’s look at the
difference between RRB and commercial banks –
1. While the main reason behind the existence of RRB is the development of rural
and backward areas, and also providing banking facility to rural population whereas
the main reason behind the existence of commercial banks is to make profits out of
their operations.

2. Scope of RRB is limited to agriculture finance, small sector loans, handicrafts

and other small sector loans, whereas scope of commercial banks is wide and it not
only provides agriculture finance but also housing loan, car finance, letter of credit,
credit to big companies and for many activities.

3. RRB is present in rural and semi urban areas only whereas commercial banks do
operations in all over the country that is rural, semi urban and urban areas.
4. While the focus of RRB is more on accepting deposits and granting of loans to
the people whereas the focus of commercial banks apart from lending and
borrowing is on many other services like stock broking, asset management,
insurance, merchant banking, venture capital financing, foreign exchange related
business etc…

5. Stakeholders of RRB include government of India, state government and

commercial banks whereas stakeholders of commercial banks are public, central
government etc

RRBS AND COOPERATIVE BANKS

Fundamentally both types of banks are attempts at getting people into the habit of
engaging with a bank or a bank like institutions.

RRBs typically operate as extensions of the sponsor, which is normally an established

Private or Public Sector Bank with a specific aim of providing credit to rural areas. Their
portfolio is usually retail heavy.

Cooperative Banks on the other hand are owned by their customers and are additionally
registered under cooperative societies act. Sticking to the word cooperative, these Banks
provide loans to small industries and self employed people, who may have formed the
bank in the first place.

STAKEHOLDER VALA ANSWER VHI SHARE KIS BANK KE KITTE

RRB WORKS

Area of Functioning of Regional Rural Banks:

The Regional Rural Banks are required to function within a limited
area for which they are established. Usually the functional area of
Each RRB is confined to a few districts of the state in which they are
set up. The area of functioning of RRBs is decided by central
government in consultation with NABARD and the Sponsor Banks by
way of a notification issued in this regard.

It is therefore necessary for RRBs to establish their Head Office in

central place of their notified area of functioning because they are also
authorized to open their branches or appoint agency within their
specified areas.
Area of Functioning of Regional Rural Banks:

The Regional Rural Banks are required to function within a limited

area for which they are established. Usually the functional area of
Each RRB is confined to a few districts of the state in which they are
set up. The area of functioning of RRBs is decided by central
government in consultation with NABARD and the Sponsor Banks by
way of a notification issued in this regard.

It is therefore necessary for RRBs to establish their Head Office in

central place of their notified area of functioning because they are also
authorized to open their branches or appoint agency within their
specified areas.

c) Providing managerial and financial assistance to RRB.