RRB—Regional Rural Banks, also known as Gramin Banks, are financial institutions in India that provide services to rural areas. They were established under the Regional Rural Banks Act of 1976.

These banks aim to "enhance the accessibility of banking services for rural and agricultural communities while fostering rural development".

There are 43 Regional  Rural Banks (RRBs) in India, with 21,856  branches across 26 states and 3 union territories. Their sponsorship comes from 12 Scheduled Commercial Banks (SCBs). In India, Regional Rural Banks (RRBs) accommodate 28.3 crore depositors and 2.6 crore borrowers.

The focus of Regional Rural Banks (RRBs) in these areas aims to reduce economic disparities between urban and rural sectors while also contributing to the goals of balanced regional development and inclusive growth. This article is about regional rural banks in India and contains the details of their ownership, features, amalgamation, regulatory authority, function, and state-wise list of banks in India.

A PDF format is also attached to this article in both English and Hindi for offline download. For any clarifications, check the FAQ section given below 

Click here →IBPS RRB Notification & Apply Online 2025 Link

Foreign Banks in India

Regional Rural Banks in India 2025 PDF Download

Click the link provided below to download the free PDF about Regional Rural Banks in India in English and Hindi.

About Regional Rural Banks in India 2025 in English

About Regional Rural Banks in India 2025 in Hindi

Ownership of Regional Rural Bank

The equity shares about regional rural banks in india are distributed among the Central Government, the Sponsor Bank, and the State Government in a fixed proportion. The ownership of RRB is as follows,

• Central Government - 50%

• Sponsor Bank - 35%

• State Government - 15%

The ownership of Regional Rural Bank is owned by the Government of India as the maximum share capital is owned by the Central Government.

Government Banks in India

Objectives of Regional Rural Bank

Here, we have provided some of the important objectives about Regional Rural Banks in India.

• The main objective of the Regional Rural Bank is to provide credit and banking facilities to the small (owns 1 or 2 hectares of land) and marginal (owns less than 1 hectare of land) farmers, agricultural laborers, small artisans, and entrepreneurs in the rural areas.

• The RRBs were conceptualized to combine the local feel and familiarity of rural problems characteristic of cooperatives with the professionalism and large resource base of commercial banks.

• RRBs were established to develop the banking systems in rural parts of India for agriculture, commerce, industries, and other credit needs. 

• RRBs cater to a more scattered population that demands smaller ticket loans, and these banks operate under strict operational and lending norms.

Development Banks In India

First Regional Rural Bank In India

The first Regional Rural Bank in India was Prathama Bank, which is headquartered in Moradabad, Uttar Pradesh, and it was sponsored by Syndicate Bank.

Features of Regional Rural Banks

The following are the important features of regional rural banks in India

• RRBs are a new form of scheduled commercial banks which is backed by a strong commercial bank. 

• Each RRB is operated within a certain limit only.

• Regional Rural Banks in India provide banking facilities to small, marginal farmers, artisans, etc., in rural areas.

• RRBs reduce regional imbalances by checking the outflow of rural deposits to urban areas. This will increase the employment generation in rural areas.

• RRBs provide 75% of their total credit as Priority Sector Lending to fulfill the criterion applicable to commercial banks.

There are 43 Regional Rural Banks (RRBs) in India, with 21,856 branches across 26 States and 3 UTs. They are sponsored by 12 Scheduled Commercial Banks (SCBs). RRBs in India have 28.3 crore depositors and 2.6 crore borrowers. 

Role and Functions of Banks in India

Amalgamation of Regional Rural Bank

Here we have provided the complete details of the merger of RRB banks in this passage.

The Reserve Bank of India in 2001 constituted a Committee under the Chairmanship of Dr V S Vyas on “Flow of Credit to Agriculture and Related Activities from the Banking System” to examine the relevance of RRBs in the rural credit system and the alternatives for making it operational. In the year 2005, the consolidation process was initiated as recommended by Dr V S Vyas's Committee.

In 2005, the first phase of amalgamation was initiated by the Sponsor Bank-wise within a State. The amalgamation process brought down the number of RRBs from 196 to 82. To provide better customer service by having better infrastructure, computerization, an experienced workforce, common publicity, and marketing efforts, the amalgamation was carried out in the year 2011. The amalgamated RRBs also benefit from large areas of operation and enhanced credit exposure limits for high-value and diverse banking activities. As a result of the second phase of amalgamation during 2011-2014, the number of RRBs was brought down to 56 from 82. 

In the year 2018-2019, the amalgamation of RRBs was done based on the roadmap provided by NABARD and consultation with respective Sponsor Banks and State Governments. As of April 2019, the number of RRBs has been brought down to 43 from 56. The amalgamation has been made with the expectation of bringing better efficiency of scale, higher productivity, improved financial health of the RRBs, and greater credit flow to rural areas.

Basics of Banking

Regulatory Authority of Regional Rural Banks in India

The two prime regulators of Regional Rural Banks in India are the Reserve Bank of India and the NABARD (National Bank for Agriculture and Rural Development).

RBI: The Banking Regulation Act of 1949 empowers the Reserve Bank of India to inspect and supervise commercial banks. RBI is the overarching regulator of the entire banking system.

NABARD: NABARD functions as the supervisor of rural financial institutions- both Regional Rural Banks (RRBs) and Rural Cooperative Banks (RCBs) under Section 35(6) of the Banking Regulation Act, 1949.

Functions of Regional Rural Banks in India

Regional Rural Banks in India are known as the scheduled commercial banks whose primary function is to accept deposits and disburse loans.

The other important functions about Regional Rural Banks in India are as follows,

• RRBs provide various banking facilities to rural and semi-urban areas.

• The main function of RRBs is to disburse wages of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and Pradhan Mantri Gram Sadak Yojana (PMGSY) workers and distribute pensions.

• RRBs provide para-banking facilities such as locker facilities, debit and credit cards, mobile banking, internet banking, and UPI services.

• They provide basic banking needs for the development of Agriculture, Trade, Commerce, Industry, and other productive activities in rural areas, credit, and other facilities, particularly to the small and marginal farmers, Agricultural laborers, Artisans, and small entrepreneurs. 

Chairman, Regional Rural Bank

Here, we have provided the chairman of RRBs in India and how they are appointed.

• Each Regional Rural Bank has a separate chairman.

• Under the provision of Section 11 of the RRB Act, 1976, the chairman of the RRBs is appointed by the Sponsor Banks of the respective RRBs.

• With the consultation with NABARD, the sponsor bank appoints the chairman of RRBs sponsored by them. But there are no guidelines for the selection of a chairman.

IBPS RRB PO Salary

State-wise List of RRBs in India 2025

The table about Regional Rural Banks in India state-wise list includes their names, head offices, sponsor banks, and official websites. Candidates can find detailed information about specific RRBs on their respective official websites. The total number of RRBs in India is 43.

IBPS RRB PO Previous Year Paper

FAQs

Q. What is the full form of RRB?

The full form of RRB is Regional Rural Bank.

Q. What are Regional Rural Banks?

Regional Rural Banks in India are Scheduled Commercial Banks that provide banking services for rural and underprivileged people at the regional level across various states in the country.

Q. Which is the first Regional Rural Bank in India?

The first RRB in India was Prathama Bank, which is headquartered in Moradabad, Uttar Pradesh, and it was sponsored by Syndicate Bank.

Q. What are the regulatory bodies of RRBs in India?

The RBI and NABARD are the two regulatory bodies of RRBs in India.

Q. How many RRBs are currently in India?

At present, 43 RRBs are operating in India.

Q. What is the difference between RRBs and Commercial Banks?

RRBs provide credit and other banking facilities to the rural areas of the country while Commercial Banks provide agricultural loans along with car, housing, and other loans and utility services.