Who sponsors Regional Rural Banks?

a. Government of India

b. Reserve Bank of India

c. Nationalized Commercial Bank

d. None of these

ANSWER: Nationalized Commercial Bank

Explanation:

RRBs are sponsored by Nationalized Commercial Banks.

RRBs like any other commercial banks (PSBs or PVT sector banks) are governed by Banking Regulation Act, RBI Act and other guidelines issued by Ministry of Finance, Govt. of India.

Each RRB has a Board of Directors consisting of nine members headed by the Chairman, who generally belongs to the Sponsor Bank.

NABARD is responsible for overall supervision and inspection of the RRBs.