List of Regional Rural Banks in India

Regional Rural Banks (RRB) also called as Gramin Bank are Indian Scheduled Commercial Banks (Government Banks) operating at regional level in different States of India. These Banking System is established by Government of India for the development of rural areas in the country by providing banking facilities to rural and semi-urban areas. Considering the absence of proper banking facilities in the rural areas ,RBI in consultation with Central Government, State Government and some major nationalized banks set up the RRB’s to improve the economical status of rural people. The RRB’s are  controlled by NABARD (National Bank for Agricultural and rural Development). RBI provides concessions to RRB’s  like lower interest rates, refinancing facilities from NABARD like lower cash ratio, lower statutory liquidity ratio, Lower rate of interest  on loans taken from sponsoring banks & reimbursements of the expenses on staff training. In this article we will discuss about History,Role of RRB’s, list of RRB’s etc.

History of RRB

Under the provisions of an Ordinance passed on 26 September 1975 and the RRB Act 1976 Regional Rural Banks were established to provide credit facilities to weaker sections in rural areas particularly small & marginal farmers, agricultural labourers, artisans & small entrepreneurs. At first 5 RRB’s were set up upon recommendation of Narasimham Committee working Group and was sponsored by Syndicate bank, State Bank of India,Punjab National Bank,United Commercial bank & United bank of India. First five RRB’s were, ‘Prathama Bank’,head office at Moradabad U.P sponsored by Syndicate Bank; ‘Gaur Gramin Bank’ Sponsored by UCO Bank in Malda,West Bengal; Gorakhpur Kshetriya Gramin Bank in Gorakhpur U.P Sponsored by SBI; Haryana Kshetriya Gramin Bank, in Bhiwani Haryana Sponsored by Punjab National Bank; Anchalik Gramin Bank in  Jaipur, Rajasthan Sponsored by UCO Bank respectively. All these five RRB’s had an authorized capital of 1 crore which was later raised to 5 crore.

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Objective & Role of RRB

RRB’s plays an important role in economic development of rural India. Main function of RRB is to provide financial support to farmers & small scale entrepreneurs.The RRB’s support the weaker sections of society by granting loans to the small& marginal farmers, agricultural labourers, artisans & small scale entrepreneurs individually or in groups & also to cooperative societies. RRB has so far succeeded in upliftment of weaker sections of society economically. These Banks have succeeded in extending their branch network to unbanked and under-banked rural areas .RRB’s played an important role in implementing various special schemes such as Integrated Rural Development Programme. RRB’s involvement in providing microfinance services through Self Help Groups Bank linkage has been successful initiative in financial inclusions.

List of Regional Rural Banks in India

There are currently 45 RRB’s in India. Two states of India  i.e, Goa and Sikkim doesn’t have RRB. Uttar Pradesh has highest number of RRB’s .Tabulated below is the list of RRB’s in India & their respective state-

Click here to know about role and objective of RRB in  detail.

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