Regional Rural Banks were created to serve rural areas of India with basic banking and financial services and provide credit facilities to the agriculture and rural sectors. They are local level banking organizations operating in different Indian states, with equity divided between the Government of India, state governments, and sponsor banks. The first Regional Rural Bank called Prathama Bank was established in Moradabad in 1975 with Syndicate Bank as the lead sponsor bank.
4. 2.
Objectives
• They have been created with a view to serve mainly rural areas of India with basic
Banking and Financial Services.
• To provide credit facility to Agriculture & Rural sector.
5. 3.
Establishment
• RRB Act, 1975 by Narsimham Working Committee.
• The Equity of RRB is divided into following ratio :
I. GOI – 50%
II. State Government – 15%
III. Lead Bank (Sponsor Bank) – 35%
• The first RRB named “Prathama Bank” was established in Moradabad on 2nd Oct
1975 and the Lead bank was “Syndicate Bank”
9. Following is the decision making hierarchy of officials in a
Regional Rural Bank:
✘ Board Of Directors
✘ Chairman & Managing Director
✘ General Manager
✘ Chief Manager/Regional Managers
✘ Senior Manager
✘ Manager
✘ Officer/Assist
10. List of Regional Rural Banks
✘ Allahabad UP Gramin Bank
✘ Andhra Pradesh Grameena Vikas Bank
✘ Andhra Pragathi Grameena Bank
✘ Arunachal Pradesh Rural Bank
✘ Assam Gramin Vikash Bank
✘ Baroda Gujrat Gramin Bank
✘ Bihar Gramin Bank
✘ Chhattisgarh Rajya Gramin Bank
