The Full Form of ‘REC’ in Banking is ‘Rural Electrification Corporation’.
Full Form of REC
REC, or the Rural Electrification Corporation, is an Indian government-owned financial institution that provides various types of financing for rural electrification projects. The main purpose of REC is to provide financial assistance to State Governments and State Electricity Boards (SEBs) to fund the construction of energy infrastructure in rural areas.
Based in New Delhi, REC was founded in July 1969 with the aim of providing electricity to rural households and villages across India. This was part of a larger effort by the Government of India to bring economic development and improved living conditions to millions of people living in rural parts of India.
The first step towards achieving this goal was taken in 1973 when the Government passed the Electricity Supply Act. This Act enabled SEBs to raise funds from capital markets and specified that they must use 75% of the funds raised for developing rural electrification projects.
Since then, REC has been providing loans and other finance to SEBs, as well as individual borrowers who are either implementing or planning large-scale projects related to rural electrification. It also provides financial aid for small-scale projects such as solar home lighting systems, biomass power plants, etc. In addition, REC also provides technical assistance services such as project appraisal and monitoring progress on projects being funded by it.
In addition to its primary role as a financier for rural electrification projects, REC also provides other services such as capacity building initiatives aimed at helping local communities understand how best to make use of renewable energy sources like solar and wind power for their own benefit; it also engages in research activities related to renewable energy sources and their development potentials. Moreover, it organizes training sessions on renewable energy technologies for stakeholders including SEB engineers, members of local communities, etc., in order to ensure adequate technical knowledge about renewable energy resources is available among these groups.
Overall, REC has played a major role in making India self-reliant when it comes to meeting its own electricity demands through renewable sources. Its focus on reducing poverty by improving access to electricity has resulted in greater economic opportunities being available across rural areas throughout India which have benefitted from its efforts over time.
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