Which committee recommended the set-up of Regional Rural Banks?

a. Nayak Committee

b. A P Shah Committee

c. Narsimhan Committee

d. Rangarajan Committee

ANSWER: Narsimhan Committee

Explanation:

RRBs were set up on the recommendations of The M. Narasimham Working Group (during the tenure of Indira Gandhi government).

RRBs were established under the provisions of an Ordinance passed on September 1975 and the RRB Act. 1976.

It aims provide sufficient banking and credit facility for agriculture and other rural sectors.

RRBs are local level banking organizations created to serve primarily rural areas of India with basic banking and financial services.