Regional Rural Banks in India: Regional Rural Banks are the banks that work at the state level for the financial benefit of rural and agriculture sectors. These banks are located all over India and work in the different regions of the states. These are one of the most trusted banks for rural people to have financial support. In this blog, we will provide you with the details of the Regional rural banks and their functions.
Questions related to regional rural banks are often asked in various banking exams. It is one of the important topics for candidates preparing for any banking exams.
Table of Contents
What are Regional Rural Banks?
Regional Rural Banks are a form of commercial banks which functions at the regional level. The major stakes of these banks are owned by the government. These banks mostly cater the loans and financial support for rural people, small farmers, small artisans, and people with unorganized employment in rural area.
Check out the types of banks in India from here!
They also work as a branch of the banking service of national banks. So, they can provide banking services in rural areas.
Who regulates RRB in India?
RRBs in India are primarily regulated by RBI (Reserve Bank of India) and NABARD (National Bank for Agricultural and Rural Development). RBI regulates any bank that performs commercial activities which makes it a regulator for RRBs. Whereas NABARD regulates any bank associated with the services for the rural and agricultural sectors. NABARD regulates the schemes of the RRBs for rural and agricultural sector.
List of Regional Rural Banks in India
There were hundreds of RRBs in India when they were started. However, after a few amalgamations, many RRBs were merged. There are only 56 regional rural banks currently working in India. The name of these 56 RRBs are as follows:
| Regional Rural Banks | Sponsor Banks | Headquarters |
| Andhra Pragathi Grameena Bank | Syndicate Bank | Kadapa |
| Chaitanya Godavari Grameena Bank | Andhra Bank | Guntur |
| Andhra Pradesh Grameena Vikas Bank | State Bank of India | Kadapa |
| Saptagiri Grameena Bank | Indian Bank | Chittor |
| Arunachal Pradesh Rural Bank | State Bank of India | Naharlagun |
| Assam Gramin Vikash Bank | United Bank of India | Guwahati |
| Langpi Dehangi Rural Bank | State Bank of India | Diphu |
| Uttar Bihar Gramin Bank | Central Bank of India | Muzaffarpur |
| Bihar Gramin Bank | UCO Bank | Patna |
| Madhya Bihar Gramin Bank | Punjab National Bank | Patna |
| Chhattisgarh Rajya Gramin Bank | State Bank of India | Raipur |
| Baroda Gujarat Gramin Bank | Bank of Baroda | Bharuch |
| Dena Gujarat Gramin Bank | Dena Bank | Gandhinagar |
| Saurashtra Gramin Bank | State Bank of India | Rajkot |
| Sarva Haryana Gramin Bank | Punjab National Bank | Rohtak |
| Himachal Pradesh Gramin Bank | Punjab National Bank | Mandi |
| Ellaquai Dehati Bank | State Bank of India | Srinagar |
| J&K Grameen Bank | J&K Bank Ltd. | Jammu |
| Vananchal Gramin Bank | State Bank of India | Ranchi |
| Jharkhand Gramin Bank | Bank of India | Ranchi |
| Pragathi Krishna Gramin Bank | Canara Bank | Ballari |
| Kaveri Gramin Bank | State Bank of India | Mysuru |
| Karnataka Vikas Grameena Bank | Syndicate Bank | Dharwad |
| Kerala Gramin Bank | Canara Bank | Mallapuram |
| Narmada Jhabua Gramin Bank | Bank of India | Indore |
| Central Madhya Pradesh Gramin Bank | Central Bank of India | Indore |
| Madhyanchal Gramin Bank | State Bank of India | Sagar |
| Vidarbha Konkan Gramin Bank | Bank of India | Nagpur |
| Maharashtra Gramin Bank | Bank of Maharashtra | Aurangabad |
| Manipur Rural Bank | United Bank of India | Imphal |
| Meghalaya Rural Bank | State Bank of India | Shillong |
| Mizoram Rural Bank | State Bank of India | Aizawl |
| Nagaland Rural Bank | State Bank of India | Kohima |
| Odisha Gramya Bank | Indian Overseas Bank | Bhubaneshwar |
| Utkal Grameen Bank | State Bank of India | Bolangir |
| Puduvai Bharathiar Grama Bank | Indian Bank | Puducherry |
| Punjab Gramin Bank | Punjab National Bank | Kapurthala |
| Malwa Gramin Bank | State Bank of India | Sangrur |
| Sutlej Gramin Bank | Bhatinda | |
| Baroda Rajasthan Kshetriya Gramin Bank | Bank of Baroda | Ajmer |
| Rajasthan Marudhara Gramin Bank | State Bank of India | Jodhpur |
| Pallavan Grama Bank | Indian Bank | Salem |
| Pandyan Grama Bank | Indian Overseas Bank | Virudhunagar |
| Telangana Grameena Bank | State Bank of India | Hyderabad |
| Tripura Gramin Bank | United Bank of India | Agartala |
| Gramin Bank of Aryavart | Bank of India | Lucknow |
| Allahabad UP Gramin Bank | Allahabad Bank | Banda |
| Baroda Uttar Pradesh Gramin Bank | Bank of Baroda | Raebareli |
| Kashi Gomti Samyut Gramin Bank | Union Bank of India | Varanasi |
| Sarva UP Gramin Bank | Punjab National Bank | Meerut |
| Prathama UP Gramin Bank | Syndicate Bank | Moradabad |
| Purvanchal Bank | State Bank of India | Gorakhpur |
| Uttarakhand Gramin Bank | State Bank of India | Dehradun |
| Bangiya Gramin Vikash Bank | United Bank of India | Murshidabad |
| Paschim Banga Gramin Bank | UCO Bank | Howrah |
| Uttarbanga Kshetriya Gramin Bank | Central Bank of India | Coochbehar |
Ownership of Regional Rural Banks (RRB)
Regional Rural Banks’ stakes are owned by the central government, state government, and sponsor banks. The equity of all the regional rural banks is divided equally among all the owners. The ratio of equity is divided among all three owners as follows:
- State Government owns 15% of stakes
- 35% stakes are owned by Sponsor Banks
- Central Government owns 50% stakes
Objectives of Regional Rural Banks in India
Regional Rural Banks have various objectives and you must have proper information regarding their objectives. The objectives of regional rural banks are as follows:
- Providing banking services in the rural areas of the states.
- Creating awareness among rural people regarding money saving, financial balance, and banking schemes.
- Providing loans and financial assistance for the agricultural sector, rural people, small farmers, and artisans.
- Provides loans with low interest rates in the rural areas.
Functions of Regional Rural Banks in India
Regional Rural Banks are basically a commercial banks that provide services to rural and agricultural sector. RRBs have various functions to perform for their commercial and rural area services. The functions of regional rural banks are as follows:
- Giving Loans: The major and primary function of any regional rural bank is to provide loans to the people of rural areas & agricultural sector. They also provides different schemes to give financial assistance for any materialistic developmetn.
- Creating Awareness: RRBs are also responsible for creating awareness regarding finance, banking services, and money-saving among the people of rural area.
- Providing Wages: Regional Rural banks are the responsible authority to provide wages to the labourers that are working under any government schemes like MANREGA. They also disburse pensions to the rural people.
We hope this blog gave you a better idea about the Functions of regional rural banks in India. To read more blogs like this, visit the Oliveboard website.
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Frequently Asked Questions
Regional Rural Banks are the commercial banks that function in the regional area for rural and agricultural sector.
Currently, there are 56 RRBs operating in India.
Central Government owns 50% equity of regional rural banks.
RBI and NABARD regulate the regional rural banks.
Hey everyone, This is Vaishnavi Kumari an edtech writer and also a government exams aspirant. I have worked for various edtech platforms. I will give my best to provide you with the crucial information for government and banking exams. Being the writer as well as aspirant, I understand your needs and will try to make your preparation journey easier.
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