In this article, we discuss about Regional Rural Banks (RRBs) were established in 1975 under the Regional Rural Banks Act, 1976, with the primary aim of providing credit and banking facilities to rural areas—especially to small farmers, artisans, and rural entrepreneurs. As of May 1, 2025, the RRB sector has undergone a historic transformation under the Phase IV Amalgamation process, streamlining the number of RRBs from 43 down to 28 based on the "One State, One RRB" principle.

RRBs continue to act as an essential link between commercial banks and the rural economy, supporting financial inclusion, agricultural development, and rural employment. For aspirants preparing for Banking, SSC, UPSC, Railway, Defence, Insurance, and State PCS exams, staying updated on this recent consolidation is essential. Questions related to the new ownership structures, the 2025 Banking Laws (Amendment) Act, and the state-wise headquarters of the 28 remaining RRBs are now a high-priority part of the Banking Awareness and Indian Economy sections.

This article provides a complete, updated overview of Regional Rural Banks in India (2025), covering their origin, objectives, the latest Phase IV consolidation, and the updated state-wise list of headquarters. A downloadable PDF (English & Hindi) reflects these 2025 changes for your last-minute preparation.

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 of 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 Government of India owns the majority share capital of the Regional Rural Banks of India, as the Central Government holds the maximum share capital.

Government Banks in India

Objectives of the Regional Rural Bank

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

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

• The RRBs were conceptualised 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 banking systems in rural India for agriculture, commerce, industries, and other credit needs. 

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

Development Banks In India

First Regional Rural Bank In India

The first of all Regional Rural Banks 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 are 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 controlling the outflow of rural deposits to urban areas, which increases employment in rural areas.

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

There are 28 Regional Rural Banks (RRBs) in India, with 22,966 branches across 26 States and 2 UTs. They are sponsored by 12 Scheduled Commercial Banks (SCBs). RRBs in India have 31.33 crore depositors and 3.03 crore borrowers. 

Role and Functions of Banks in India

Amalgamation of Regional Rural Banks

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, computerisation, 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 about 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 of 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 the 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 labourers, 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 provisions 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 28.

IBPS RRB PO Previous Year Paper

FAQs

Q. Why is it important to study RRBs for competitive exams?

RRBs are frequently asked about in the Banking Awareness, Indian Economy, and General Awareness sections of exams like IBPS RRB, IBPS PO/Clerk, SSC, UPSC, Railway, Insurance, and State PCS. Questions can cover their history, functions, sponsor banks, or headquarters.

Q. Does the PDF include a state-wise list of RRB headquarters?

Yes! The PDF provides a state-wise and RRB-wise list of headquarters along with details of their sponsor banks to help you revise effectively.

Q. Are the functions and objectives of RRBs explained in simple terms?

Absolutely! The article and PDF break down the key functions and objectives of RRBs in an easy-to-understand way, useful for both exams and interviews.

Q. Is the PDF available in both English and Hindi?

Yes! The downloadable PDF is available in both English and Hindi for your convenience.

Q. Are RRB-related questions important for IBPS RRB-specific exams?

Definitely! Since RRBs are at the core of these exams, questions about RRB formation, structure, sponsor banks, and reforms often appear in prelims, mains, and interviews.

Q. How can I remember the sponsor banks and headquarters of RRBs?

You can use association techniques (linking RRB names to states or sponsor banks) and regularly revise using the summary chart in the PDF.

Q. Will this list cover the latest updates for 2025?

Yes! The article and PDF are updated for 2025, ensuring you have the most recent and relevant data for your preparation.

Q. Does the article explain the ownership structure of RRBs?

Yes! The article highlights the ownership pattern (50% Central Government, 15% State Government, 35% Sponsor Bank) and explains how it works.

Q. Are Regional Rural Banks part of priority sector lending?

Yes! RRBs play a vital role in meeting priority sector lending targets, especially for agriculture, small-scale industries, and rural artisans. This is an important point for exams focusing on banking policies.

Q. Do RRBs offer services beyond credit to farmers?

Absolutely! RRBs also provide deposit services, remittance facilities, microfinance, and financial inclusion initiatives in rural areas. They support both savings and credit needs.