The first RRB named Prathama Grameen Bank was sponsored by ______?

a. Punjab National Bank

b. State Bank of India

c. Syndicate Bank

d. Canara Bank

ANSWER: Syndicate Bank

Explanation:

Syndicate Bank sponsored the first regional rural bank in India by name Prathama Bank, in Moradabad district, Uttar Pradesh on 2 October 1975.

RRBs were owned by the Central Government, the State Government and the Sponsor Bank (There were five commercial banks, Punjab National Bank, State Bank of India, Syndicate Bank, United Bank of India and United Commercial Bank, which sponsored the regional rural banks).

Stake in RRBs

Central Govt. – 50%

State Govt. – 15%

Sponsor Bank – 35%