Regional rural banks (RRBs) can transform themselves into a different form to rival banks across sectors by creating specialised products, Reserve Bank of India Deputy Governor H. R. Khan said here on Friday. Speaking at a seminar on ‘Gramin banks and inclusive growth’ here , he said, “RRBs will continue to play an important role in a new avatar. They will present a real competition to public as well as private sector and foreign banks.”
For this, they had to transform into ‘matured’ RRBs, besides creating differentiated products catering to the people’s specific requirements instead of a one-size-fits-all kind of product, he said. “RRBs can be rural superbazars with products,” he added.
He said, they could continue being relevant following the ‘FARMER’ principle, that is, providing affordable finance to farming and allied activities, helping them in mitigating risks and managing the market for their commodities, extending support to them and considering resources of farmers other than providing credit.
Mr. Khan released a book — Gramin Banks Revisited — authored by N. K. Thingalaya, former Chairman of Syndicate Bank.