(a) whether the Agriculture & Rural Development Banks (ARDBs) are not allowed to function
as full fledged banks like other banks; and
(b) if so, the reasons therefor?
(a) whether the Agriculture & Rural Development Banks (ARDBs) are not allowed to function
as full fledged banks like other banks; and
(b) if so, the reasons therefor?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) & (b) : In terms of Banking Regulation (BR) Act, 1949 (As Applicable to Co-operative Societies)
Agriculture and Rural Development: Banks (ARDBs) are not considered banks. ARDBs are actually
co-operative societies disbursing long-term credit to farmers. Other banks (e.g. Commercial Banks,
Co-operative Banks and Regional Rural. Banks) are regulated by the Reserve Bank under the Banking
Regulation Act, 1949 whereas this Act does not apply to ARDBs at all.