In today’s era, securing employment is a prevalent concern due to escalating competition in every field, from low-level to high-level jobs. Despite various job options, the banking sector stands out as a preferred choice for many. Banking careers have gained substantial popularity among job seekers across India since the past many years due to the security, respectability, perks, and competitive pay they offer. Banks have evolved significantly since their inception, catering to diverse needs.
However, before choosing a banking career, it’s crucial to understand the three main bank types: Regional Rural Banks, Public Sector Banks, and Private Sector Banks. Identifying your preference among these categories is essential when considering a career in banking.
Private Sector Banks are financial institutions owned and operated by private entities or corporations rather than the government. These banks function as profit-driven entities and are managed by private shareholders. Private Sector Banks also offer various banking services such as savings and current accounts, loans, credit cards, wealth management, and investment products to individuals, businesses, and corporate clients.
Here in this blog, our discussion focuses on elucidating the significance and difference of Public Sector Banks (PSBs) and Regional Rural Banks (RRBs) alongside exploring the job opportunities they offer. Understanding the vital role these banks play in the nation’s economy and financial inclusion is crucial. Exploring their career prospects reveals a wide array of job opportunities available for individuals pursuing banking careers, accommodating candidates interested in working in both urban and rural environments.
Regional Rural Banks (RRBs) & Public Sector Banks (PSBs)
RRBs are rural financial institutions established by the Government of India in partnership with the concerned State Government(s) and sponsor bank(s), with shares allocated at a ratio of 50%, 35%, and 15%, correspondingly. These banks primarily cater to the banking needs of rural and semi-urban areas. They are structured as a hybrid between cooperative banks and commercial banks, intended to provide credit and other banking facilities to rural and agricultural sectors. NABARD serves as the overseeing body for RRBs and other rural financial institutions such as Rural Co-operative Banks (RCBs).
Public Sector Banks or known as Commercial banks are wholly owned and operated by the government. They are established under the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980. These banks serve the banking needs of the general public, corporates, industries, and various sectors across the country. PSBs have a broader reach and a more comprehensive set of services compared to RRBs.
Major differences between RRBs and PSBs
These are some basic points that throw some light on the work areas of both RRBs and PSBs.
Opportunities for Bank Careers
Banks offer two main opportunities: PO (Probationary Officer) & Clerk.
Banks release vacancies almost every year to recruit eligible graduates in both these posts and IBPS (Institute of Banking Personnel Selection) holds that responsibility of conducting these exams like IBPS PO, IBPS RRB PO, IBPS Clerk, IBPS RRB Office Assistant. There is huge demand for these jobs these days and most of the aspirants who are preparing for competitions, opt for these exams. While opting for the banking sector, you need to be clear which type of bank you will be more interested to work in.
Many candidates realize the difference of functioning of each banking sector after entering the organization and sometimes also decide to quit their jobs because of one or the other reasons. One of the common reasons is workload in the organization. Most of you would wonder if workload in RRB is less than that in a regular commercial bank /PSB. It’s better to clear this confusion right away.
Workload in RRB vs PSB
- Regional Rural Banks work in a limited geography and have limited products to offer therefore you can prefer a job in a Regional Rural Bank if you are worried about getting transferred anywhere across India. You may save the pain of moving to far away places.
- RRBs primarily provide agriculture loans and rural schemes targeting towards benefitting the rural population of India, therefore we can say to some extent that work load is lesser as compared to commercial or Public Sector Banks as they offer a wide range of products and services.
- RRBs function in majorly in rural as well as semi urban areas, whereas commercial or public sector banks operate all over India, in some cases abroad also. This makes it clear that comparatively RRBs function with a lesser workload than the commercial banks.
- RRBs’ main work area is accepting deposits and granting loans, whereas a commercial bank works on many other areas such as stock broking, merchant banking, insurance services, asset management, foreign exchange etc., thus extending the workload.
In a nutshell, we can say that RRBs have a bit of less workload than the commercial banks/PSBs as the scope of work in RRBs is still expanding. We can expect higher workload in RRBs also in the coming years, but their basic aim of serving the rural population will stay the same.
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