RDBS Full Form, Definition, History, Functions, Eligibility

RDBS stands for Rural Development Banking Service. banks play a significant role in the development of rural areas by providing financial assistance, and credit facilities, conducting research and development, and monitoring and evaluating rural development schemes. The primary objective of RDBS is to provide access to affordable credit facilities to farmers, rural artisans, and other individuals involved in rural development activities. The loans provided by RDBS banks are tailored to the specific needs of rural borrowers and are generally provided at lower interest rates compared to commercial banks.

RDBS banks also promote financial inclusion by providing banking services to remote rural areas, where access to banking facilities is limited. In addition to providing credit facilities, RDBS banks also offer deposit facilities, such as savings and recurring deposit accounts, to customers. These deposit facilities help individuals save their earnings and promote a savings culture in rural areas.

What is Rural Development Banking Service (RDBS)?

Rural Development Banking Service is a specialized service provided by NABARD to ensure adequate credit flow for agriculture and other economic activities in rural areas. RDBS is responsible for implementing and monitoring various rural development schemes to improve the socio-economic status of rural India.

History of RDBS

The history of Rural Development Banking Service (RDBS) in India can be traced back to the establishment of the National Bank for Agriculture and Rural Development (NABARD) in 1982. NABARD was set up with the aim of promoting agriculture and rural development by providing credit facilities and other financial services to farmers, rural artisans, and other individuals involved in rural development activities.

The RDBS, which is a specialized service provided by NABARD, was established in 1982 to specifically cater to the credit needs of the rural population. The RDBS banks were set up with the aim of providing affordable credit facilities to farmers and other rural borrowers, who were often neglected by commercial banks due to their inability to provide adequate collateral.

Initially, the RDBS banks faced several challenges in providing credit facilities to rural borrowers, including a lack of infrastructure, low levels of financial literacy, and inadequate creditworthiness of rural borrowers. However, with the support of the government and other stakeholders, the RDBS banks gradually expanded their reach and improved their service delivery.

Over the years, the RDBS banks have played a significant role in promoting rural development in India. They have provided credit facilities to millions of rural borrowers, thereby improving their income levels and living standards. In addition to providing credit facilities, the RDBS banks have also been involved in implementing and monitoring various rural development schemes, which have contributed significantly to the social and economic development of rural areas.

Today, RDBS banks are an integral part of India's banking system, and their continued efforts are crucial in ensuring sustainable rural development in the country.

Functions of Rural Development Banking Service (RDBS)

The primary functions of RDBS include:

• Providing financial assistance to individuals and organizations engaged in agriculture and allied activities.
• Providing credit to the rural poor and marginalized sections for their various economic and social needs.
• Conducting research and development programs for the betterment of rural India.
• Monitoring and evaluating the progress of rural development schemes.

Services Offered by Rural Development Banking Service (RDBS)

The various services offered by RDBS include:

Credit Facilities

RDBS provides credit facilities to farmers, self-help groups, joint-liability groups, and other rural organizations for various purposes, such as agricultural and allied activities, micro-enterprises, cottage industries, and much more.

Grants

RDBS provides various grants to individuals and organizations for the promotion of rural development activities, such as the construction of rural roads, irrigation facilities, and more.

Capacity Building

RDBS conducts various training and capacity-building programs to help rural individuals and organizations enhance their skills and knowledge in various areas, such as agriculture, livestock, and entrepreneurship.

Research and Development

RDBS conducts research and development programs to identify innovative and sustainable rural development solutions. It also provides financial assistance to individuals and organizations for research and development activities.

Eligibility Criteria for Rural Development Banking Service (RDBS)

The eligibility criteria for availing of the services offered by RDBS vary based on the specific scheme or program. However, in general, the following individuals and organizations are eligible:

• Farmers and farm laborers
• Self-help groups and joint-liability groups
• Rural entrepreneurs and small-scale industries
• NGOs and other rural development organizations
• Local government bodies
• Individuals engaged in animal husbandry, fisheries, and other allied activities

How to Apply for Rural Development Banking Service (RDBS)?

To apply for the services offered by RDBS, individuals and organizations can visit their nearest NABARD office or access their official website. The application process may vary based on the specific scheme or program.

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