Regional Rural Banks were established to ensure that rural areas in India have easy access to banking and credit services, especially for agricultural and other rural activities. These banks were created to bring financial services closer to rural communities, aiming to spur economic growth in these regions. In 1975, a special rule was passed, and in 1976, the Regional Rural Banks Act was enacted to establish RRBs. The Narsimhan Committee on Rural Credit recommended the formation of five RRBs on October 2, 1975. The objective was to cater to the financial needs of rural areas and contribute to the country’s economic development.

Ownership Structure:

RRBs are jointly owned by three entities: the central government, state government, and a sponsoring commercial bank. Ownership is divided as follows: 50% by the central government, 15% by the state government, and 35% by the sponsoring bank.

Goals and Significance:

The main goal of RRBs is to provide banking and credit services to rural regions, helping improve the economic conditions of the rural population. With a significant portion of India’s people residing in rural areas, RRBs play a vital role in promoting financial inclusion and supporting rural development.

Role in Rural Development:

RRBs play a crucial role by offering financial services in rural areas, supporting agriculture, and boosting overall rural development. These banks provide credit and other banking facilities to uplift the economic well-being of rural communities.

Historical Context:

RRBs were established during the leadership of Prime Minister Indira Gandhi, reflecting the government’s commitment to addressing the financial needs of rural India.

StateName of Regional Rural BankSponsor Bank
Andhra PradeshAndhra Pragathi Grameena BankCanara Bank
Andhra PradeshChaitanya Godavari Grameena BankUnion Bank of India
Andhra PradeshSaptagiri Grameena BankIndian Bank
Arunachal PradeshArunachal Pradesh Rural BankState Bank of India
AssamAssam Gramin Vikash BankPunjab National Bank
BiharDakshin Bihar Gramin BankPunjab National Bank
BiharUttar Bihar Gramin BankCentral Bank of India
West BengalUttar Banga Kshetriya Gramin BankCentral Bank of India
West BengalPaschim Banga Gramin BankUCO Bank
West BengalBangiya Gramin Vikash BankPunjab National Bank
Tamil NaduTamil Nadu Grama BankIndian Bank
ChhattisgarhChhattisgarh Rajya Gramin BankState Bank of India
GujaratBaroda Gujarat Gramin BankBank of Baroda
GujaratSaurashtra Gramin BankState Bank of India
HaryanaSarva Haryana Gramin BankPunjab National Bank
Himachal PradeshHimachal Pradesh Gramin BankPunjab National Bank
Jammu & KashmirEllaquai Dehati BankState Bank of India
Jammu & KashmirJ&K Grameen BankJ&K Bank Ltd
JharkhandJharkhand Rajya Gramin BankState Bank of India
KarnatakaKarnataka Gramin BankCanara Bank
KarnatakaKarnataka Vikas Grameena BankCanara Bank
TelanganaAndhra Pradesh Grameena Vikas BankState Bank of India
TelanganaTelangana Grameena BankState Bank of India
TripuraTripura Gramin BankPunjab National Bank
UttarakhandUttarakhand Gramin BankState Bank of India
Uttar PradeshAryavart BankBank of India
Uttar PradeshBaroda UP BankBank of Baroda
Uttar PradeshPrathama UP Gramin BankPunjab National Bank
KeralaKerala Gramin BankCanara Bank
Madhya PradeshMadhya Pradesh Gramin BankBank of India
Madhya PradeshMadhyanchal Gramin BankState Bank of India
ManipurManipur Rural BankPunjab National Bank
MeghalayaMeghalaya Rural BankState Bank of India
RajasthanBaroda Rajasthan Kshetriya Gramin BankBank of Baroda
RajasthanRajasthan Marudhara Gramin BankState Bank of India
PunjabPunjab Gramin BankPunjab National Bank
MizoramMizoram Rural BankState Bank of India
PuducherryPuduvai Bharthiar Grama BankIndian Bank
NagalandNagaland Rural BankState Bank of India
MaharashtraMaharashtra Gramin BankBank of Maharashtra
MaharashtraVidharbha Konkan Gramin BankBank of India
OdishaOdisha Gramya BankIndian Overseas Bank
OdishaUtkal Grameen BankState Bank of India


Regional Rural Banks were introduced to ensure that rural communities have access to banking services, thereby contributing to the growth of rural economies. By offering financial support and services, RRBs play a pivotal role in advancing rural development and promoting financial inclusion.

Related Post