Question : What is the proportion of the central government's ownership of capital in Regional Rural Banks?
Option 1: 50%
Option 2: 60%
Option 3: 45%
Option 4: 55%
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Correct Answer: 50%
Solution : The correct option is 50% .
In the ownership structure of Regional Rural Banks (RRBs), the central government plays a pivotal role, holding a substantial 50% ownership stake. State governments collectively contribute to the ownership with a 15% stake. The remaining 35% ownership is held by sponsor banks, typically commercial banks that partner with the central and state governments to establish and support the functioning of RRBs.
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