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Regional Rural Banks are the banking organizations being operated in different states of India.

They have been created to serve the rural areas with banking and financial services. However,
RRB's may have branches set up for urban operations and their area of operation may include urban
areas too.
The main purpose of RRB's is to mobilize financial resources from rural / semi-urban areas and
grant loans and advances mostly to small and marginal farmers, agricultural laborers and rural
artisans. The area of operation of RRBs is limited to the area as notified by Government of India
covering one or more districts in the State. RRB's also perform a variety of different functions. RRB's
perform various functions in following heads Providing banking facilities to rural and semi-urban
areas. Carrying out government operations like disbursement of wages of MGNREGA workers,
distribution of pensions etc. Providing Para-Banking facilities like locker facilities, debit and credit
Regional Rural Banks were established under the provisions of an Ordinance passed on 26
September 1975 and the RRB Act. 1976 to provide sufficient banking and credit facility for
agriculture and other rural sectors. These were set up on the recommendations of The Narasimham
Working Group
during the tenure of Indira Gandhi's government with a view to include rural areas
into economic mainstream since that time about 70% of the Indian Population was of Rural
Orientation. The development process of RRBs started on 2 October 1975 with the with forming the
first RRB, the Prathama Bank. Also on 2 October 1976 five regional rural banks were set up on with
a total authorised capital of Rs. 100 crore ($ 10 Million) which later augmented to 500 crore ($ 50
Million). There were five commercial banks, Punjab National Bank, State Bank of India, Syndicate
Bank, United Bank of India and United Commercial Bank, which sponsored the regional rural banks.
Earlier Reserve Bank of India had laid down ceilings on the rate of interest to be charged by these
RRBs. However from August 1996 the RRBs have been granted freedom to fix rates of interest,
which is usually in the range of 14-18% for advances.
Recapitalization of Regional Rural Banks (RRBs)[edit]
Subsequent to review of the financial status of RRBs by the Union Finance Minister in August, 2009,
it was felt that a large number of RRBs had a low Capital to Risk weighted Assets Ratio (CRAR). A
committee was therefore constituted in September, 2009 under the Chairmanship of K C
Chakrabarty, Deputy Governor, RBI to analyse the financials of the RRBs and to suggest measures
including re-capitalisation to bring the CRAR of RRBs to at least 9% in a sustainable manner by
2012. The Committee submitted its report in May, 2010. The following points were recommended by
the committee:
RRBs to have CRAR of at least 7% as on 31 March 2011 and at least 9% from 31 March 2012
onwards. recapitalisation requirement of Rs. 2,200.00 crore for 40 of the 82 RRBs. This amount
is to be released in two installments in 2010-11 and 2011-12. .
The remaining 42 RRBs will not require any capital and will be able to maintain CRAR of at least
9% ifs on 31 st March 2012 and thereafter on their own.
A fund of Rs. 100 crore to be set up for training and capacity building of the RRB staff.
The Government of India recently approved the recapitalization of Regional Rural Banks (RRBs) to
improve their Capital to Risk Weighted Assets Ratio CRAR) in the following manner:
Share of Central Government i.e. Rs.1, 100 crore will be released as per provisions made by the
Department of Expenditure in 2010-11 and 2011-12. However, release of Government of India
share will be contingent on proportionate release of State Government and Sponsor Bank share.
A capacity building fund with a corpus of Rs.100 crore to be set up by Central Government with
NABARD for training and capacity building of the RRB staff in the institution of NABARD and
other reputed institutions. The functioning of the Fund will be periodically reviewed by the
Central Government. An Action Plan will be prepared by NABARD in this regard and sent to
Government for approval.
Additional amount of Rs. 700 crore as contingency fund to meet the requirement of the weak
RRBs, particularly those in the North Eastern. and Eastern Region, the necessary provision will
be made in the Budget as and when the need arises.
Organizational Structure[edit]
The Organizational Structure for RRB's varies from branch to branch and depends upon the nature
and size of business done by the branch. The Head Office of an RRB normally had three to seven
The following is the list of officers in decreasing order of their rank in the organization.
Chairman & Managing Director

General Manager

Chief Manager/Regional Managers
Senior Manager
Currently, RRB's are going through a process of amalgamation and consolidation 25 RRBs have
been amalgamated in January 2013 into 10 RRBs this counts 67 RRBs till 1st week of June 2013.
On 31 March 2006, there were 133 RRBs (post-merger) covering 525 districts with a network of
14,494 branches. On RRBs were originally conceived as low cost institutions having a rural ethos,
local feel and pro poor focus. However, within a very short time, most banks were making losses.
The original assumptions as to the low cost nature of these institutions were belied.This may be
again amalgamated in near future.At present there are 56 RRB's in India.
Legal Existence and Protection[edit]
RRB's are recognized by the law and they have legal significance.The Regional Rural Banks Act,
1976 Act No. 21 Of 1976 [9 February 1976.] reads
"For the incorporation, regulation and winding up of Regional Rural Banks with a view to developing
the rural economy by providing, for the purpose of development of agriculture, trade, commerce,
industry and other productive activities in the rural areas, credit and other facilities, particularly to the
small and marginal farmers, agricultural laborers, artisans and small entrepreneurs, and for matters
connected therewith and incidental thereto".
RRB's are therefore created with a view to develop rural economy.
List of Regional Rural banks

1. Allahabad UP Gramin Bank
2. Andhra Pradesh Grameena Vikas Bank
3. Andhra Pragathi Grameena Bank
4. Arunachal Pradesh Rural Bank
5. Gramin Bank of Aryavart
6. Assam Gramin Vikash Bank
7. Baitarani Gramya Bank
8. Bangiya Gramin Vikash Bank
9. Baroda Gujarat Gramin Bank
10. Baroda Rajasthan Kshetriya Gramin Bank
11. Baroda Uttar Pradesh Gramin Bank
12. Bihar Gramin Bank(Samastipur Kshetriya Gramina Bank Amalgamated with Bihar Kshetriya
Gramina Bank on 15 Oct 2012 - New name: Bihar Gramin Bank]]
13. Chaitanya Godavari Grameena Bank
14. Chhattisgarh Gramin Bank
15. Deccan Grameena Bank
16. Dena Gujarat Gramin Bank
17. Durg-Rajnandgaon Gramin Bank
18. Ellaquai Dehati Bank
19. Sarva Haryana Gramin Bank
20. Himachal Gramin
21. Jhabua Dhar Kshetriya Gramin Bank
22. Jharkhand Gramin Bank
23. JK Gramin Bank
24. Kalinga Gramya Bank
25. Karnataka Vikas Grameena Bank
26. Kashi Gomti Samyut Gramin Bank
27. Kaveri Grameena Bank
28. Kerala Gramin Bank
29. Krishna Grameena Bank - Amalgamated with PGB on 23 Aug 13 - New name: Pragathi
Krishna Gramin Bank
30. Langpi Dehangi Rural Bank
31. Madhumalti Building Gupte Marg
32. Madhya Bihar Gramin Bank
33. Mahakaushal Kshetriya Gramin Bank
34. Maharashtra Gramin Bank
35. Malwa Gramin Bank
36. Manipur Rural Bank
37. Marudhara Gramin Bank
38. Meghalaya Rural Bank
39. Mewar Anchalik Gramin Bank
40. Mizoram Rural Bank
41. Nagaland Rural Bank
42. Narmada Jhabwa Gramin Bank
43. Neelachal Gramya Bank
44. Pallavan Grama Bank
45. Pandyan Grama Bank
46. Parvatiya Gramin Bank
47. Paschim Banga Gramin Bank
48. Pragathi Gramin Bank; After amalgamation on 23 Aug 13 new name : Pragathi Krishna
Gramin Bank
49. Prathama Bank
50. Puduvai Bharathiar Grama Bank
51. Punjab Gramin Bank
52. [[Purvanchal Bank]merge with ballia etawa gramin bank as on 01/04/2013]
53. Rushikulya Gramya Bank
54. Saptagiri Grameena Bank
55. Sarva Haryana Gramin Bank
56. Sarva UP Gramin Bank
57. Satpura Narmada Kshetriya
58. Saurashtra Gramin Bank
59. mandhyanchal grameen bank
60. Surguja Kshetriya Gramin Bank
61. Sutlej Kshetriya Gramin Bank
62. Tripura Gramin Bank
63. Utkal Grameen Bank
64. Uttar Banga Kshetriya Gramin Bank
65. Uttar Bihar Gramin Bank
66. Uttarakhand Gramin Bank
67. Vananchal Gramin Bank
68. Vidharbha Kshetriya Gramin Bank
69. Wainganga Krishna Gramin Bank
70. Odisha Gramya Bank