Regional Rural Banks (RRBs): Evaluate the correctness of the statements and choose the right combination. S1: RRBs have a limited, specified area of operation. S2: RRBs have access to refinance from NABARD on liberal terms. S3: RRBs are required to lend only to weaker sections. Choose the correct set of true statements.

Given data

• S1: Limited area of operation.
• S2: Refinance from NABARD available.
• S3: Must lend only to weaker sections.

Concept / Approach
RRBs were set up to develop rural credit with a regional focus. Their operational area is restricted to specified districts, and they receive policy support including refinance from NABARD. While RRBs prioritize agriculture, rural artisans, and weaker sections, saying they lend only to weaker sections is too restrictive and incorrect.

Step-by-step reasoning
S1: True — RRBs operate within notified districts. S2: True — NABARD provides refinance and guidance to RRBs. S3: False — The mandate emphasizes weaker sections but is not exclusively restricted to them.

Common pitfalls
Interpreting policy priority as an absolute lending restriction.

Final Answer
S1 and S2 only.