Pallavan Grama Bank's novel initiative - ATM Cards for its customers.
Apart from Public Sector Bank Branches /Private Sector Bank Branches dotting the country’s rural landscape, RRB Branches can to be seen.
RRB stands for Regional Rural Banks. RRB’s were born on 02/10/1975.
RRB’s were set up the specific mandate to serve the rural population. As the PSB’s/Pvt.Sector Banks went on a transformation to attract new customers into their fold via CBS, ATM/Debit Cards, Mobile Banking, RTGS/NEFT, RRB’s felt the pinch.
The Sponsor Banks took upon themselves to transform their RRB’s. Towards this end, they understand that the RRB customers should also be provided the same facilities as available to their customers.
And, Pallavan Grama Bank has introduced ATM cards for its customers making it the first Regional Rural Bank to provide this facility.
Pallavan Bank customers can withdraw a maximum of Rs 25,000 a day from any of the 1,092 Indian Bank ATMs in the country.
The ATM card facility was launched at its Head Office in Salem today.
Pallavan Bank is sponsored by Indian Bank and hence the bank has come out with an Indian Bank co-branded Pallavan Bank ATM cards.
Pallavan Grama Bank is the first of the 82 RRBs in the country to introduce a co-branded ATM card.
The Bank is an Indian Bank sponsored RRB with 93 branches in 15 districts of Tamil Nadu. The bank is functioning under 100 per cent core banking solution
What are RRB’s
QUOTE from NABARD
Regional Rural Banks were established under the provisions of an Ordinance promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to
ensure sufficient institutional credit for agriculture and other rural sectors.
The RRBs mobilize financial resources from rural / semi-urban areas and grant loans and
advances mostly to small and marginal farmers, agricultural labourers and rural artisans.
The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State.
RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27 scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is shared by the owners in the proportion of 50%, 15% and 35% respectively.
Initially, five RRBs were set up on October 2, 1975 which were sponsored by Syndicate Bank, State Bank of India, Punjab National Bank, United Commercial Bank and United Bank of India. The total authorised capital was fixed at Rs. 1 crore which has since been raised to Rs. 5 Crore.
To ensure the financial stability of the RRB’s, several concessions are extended to them by RBI.
There are several concessions enjoyed by the RRBs by Reserve Bank of India such as lower interest rates and refinancing facilities from NABARD like lower cash ratio, lower statutory liquidity ratio, lower rate of interest on loans taken from sponsoring banks, managerial and staff assistance from the sponsoring bank and reimbursement of the expenses on staff training.
The RRBs are under the control of NABARD. NABARD has the responsibility of laying down the policies for the RRBs, to oversee their operations, provide refinance facilities, to monitor their performance and to attend their problems.