Since 1975 India has been gifted with the facilities of RRBs.With the establishmentof RRBs the rural people are often facilitated with some new ways of easy credit policies.India has been blessed with the boon of being buffered with ample natural resources and agricultural land.Thus the rural people having their human capital who were often left in a state of depression with no easy means to exploit it (human capital) are now in a much better position to carry out their occupation easily.Several cases can be seen as a proof of the improvement in conditions of the rural population.Thus,it should be acknowledged that the RRBs have played a positive role inevitably but some hurdles which are often seen to be as coming in the way of the development in our rural areas due to the defects in the financial system which jeopardizes the performance of RRBs.This paper describes the positive outcomes felt in the lives of rural people who have been aided by the RRBs .Individual cases have been taken up to explain the real effects in the lives of the beneficiaries.In the latter part of the paper the problems of the RRBs have also been described.Thus,throwing some light on the present day scenario of the RRBs.