UPSC Prelims Practice Questions — Secretary, DFS Chairs Review Meeting of Regional Rural Banks (RRBs) today

Q1. Regional Rural Banks fall under the administrative purview of which one of the following?

  • A. Department of Financial Services, Ministry of Finance
  • B. Department of Rural Development, Ministry of Rural Development
  • C. Ministry of Cooperation
  • D. Department of Agriculture and Farmers Welfare

Q2. With reference to the origin and legal basis of Regional Rural Banks, which of the statements given above is/are correct?

  1. They were established under the Regional Rural Banks Act, 1976.
  2. They were created as an alternative channel to the cooperative credit structure for rural and agricultural credit.
  3. The RRB Act was amended (2015) to raise authorised capital and broaden shareholding.
  4. They were established on the recommendations of the Kelkar Committee.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q3. Which one of the following is recognised as the first Regional Rural Bank established in India?

  • A. Prathama Bank
  • B. Kerala Gramin Bank
  • C. Baroda Rajasthan Kshetriya Gramin Bank
  • D. Andhra Pragathi Grameena Bank

Q4. With reference to the institutional roles associated with Regional Rural Banks, which of the statements given above is/are correct?

  1. The Reserve Bank of India is the regulator of RRBs.
  2. NABARD is the supervisory authority for RRBs.
  3. Public Sector Banks act as the sponsor banks of RRBs.
  4. SIDBI is the sponsor bank of every RRB.
  • A. 1 and 4 only
  • B. 2, 3 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q5. Regional Rural Banks in India are constituted under which one of the following?

  • A. Regional Rural Banks Act, 1976
  • B. Banking Regulation Act, 1949
  • C. NABARD Act, 1981
  • D. State Bank of India Act, 1955

Q6. With reference to the phases of amalgamation of Regional Rural Banks, which of the statements given above is/are NOT correct?

  1. Phase-I (FY 2006–FY 2010) reduced the number of RRBs from 196 to 82.
  2. Phase-II (FY 2013–FY 2015) reduced the number of RRBs from 82 to 56.
  3. Phase-III (FY 2019–FY 2021) reduced the number of RRBs from 56 to 43.
  4. Phase-IV (effective 1 May 2025) reduced the number of RRBs from 43 to 21.
  • A. 1 and 2 only
  • B. 3 only
  • C. 2 and 3 only
  • D. 4 only

Q7. The fourth phase of amalgamation of Regional Rural Banks under the 'One State–One RRB' principle was notified by which one of the following?

  • A. Department of Financial Services, Ministry of Finance
  • B. National Bank for Agriculture and Rural Development (NABARD)
  • C. Reserve Bank of India
  • D. NITI Aayog

Q8. With reference to the outcomes reported at the 2026 DFS review meeting of Regional Rural Banks, which of the statements given above is/are NOT correct?

  1. The total business of the 28 RRBs crossed ₹12 lakh crore in the first half of FY 2025-26.
  2. RRBs opened over 45.68 lakh new PMJDY accounts during the current financial year.
  3. The provisional net profit of RRBs up to December 2025 stood at ₹7,720 crore.
  4. Both the Gross NPA and Net NPA of RRBs showed a rising trend.
  • A. 1 and 3 only
  • B. 2 only
  • C. 1, 2 and 3 only
  • D. 4 only

Q9. With reference to the current network footprint of Regional Rural Banks after the fourth phase of amalgamation, which of the statements given above is/are correct?

  1. A total of 28 RRBs are in operation.
  2. They operate across 26 States and 3 Union Territories.
  3. They function through 22,158 branches.
  4. They cover only about 250 districts.
  • A. 1, 2 and 3 only
  • B. 2 and 4 only
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q10. In the classification of banks maintained by the Reserve Bank of India, Regional Rural Banks are categorised as which one of the following?

  • A. Scheduled Commercial Banks
  • B. Urban Co-operative Banks
  • C. Payments Banks
  • D. Primary Agricultural Credit Societies

Q11. With reference to the institutional support ecosystem associated with Regional Rural Banks, which of the statements given above is/are correctly identified?

  1. NABARD provides refinance support to RRBs.
  2. SIDBI is associated with MSME-related refinance support within the RRB ecosystem.
  3. Sponsor Public Sector Banks provide operational and technology support to RRBs.
  4. RRBs are supervised entirely by SIDBI.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4