Measuring The Effectiveness Of Regional Rural Banks In India - An Empirical Analysis

Abstract

This study evaluates the growth of deposits, credit, and credit-deposit ratio of Regional Rural Banks and the banking industry (India) from 1975 to 2022. The data shows that Regional Rural Banks have experienced steady growth in deposits and advances, but the credit-deposit ratio has fluctuated over time. The  Indian Banking Industry has also experienced consistent growth, with a higher credit-deposit ratio. The correlation analysis indicates a strong positive relationship between the credit-deposit ratio of Regional Rural Banks and the banking industry. The study suggests that policies aimed at improving the financial inclusion of rural areas and promoting the growth of Regional Rural Banks could lead to a more equitable and robust banking sector.