The basic objective of Regional Rural Banks was to function as professionally managed alternative channel for credit dispensation to small and marginal farmers, agricultural labourers, socio-economically weaker section of population, for development of agriculture, trade, commerce, small scale industries and other productive activities in rural areas. While only 50% branches of Public Sector Banks are located in the rural and semi-urban area and their priority sector lending is 40% of which 18% for agriculture, how will this basic objective be fulfilled with the merger of RRBs with the PSBs?
