Regional Rural Banks (RRB) in India: Functions & other details!

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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.

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 BanksSponsor BanksHeadquarters
Andhra Pragathi Grameena BankSyndicate BankKadapa
Chaitanya Godavari Grameena BankAndhra BankGuntur
Andhra Pradesh Grameena Vikas BankState Bank of IndiaKadapa
Saptagiri Grameena BankIndian BankChittor
Arunachal Pradesh Rural BankState Bank of IndiaNaharlagun
Assam Gramin Vikash BankUnited Bank of IndiaGuwahati
Langpi Dehangi Rural BankState Bank of IndiaDiphu
Uttar Bihar Gramin BankCentral Bank of IndiaMuzaffarpur
Bihar Gramin BankUCO BankPatna
Madhya Bihar Gramin BankPunjab National BankPatna
Chhattisgarh Rajya Gramin BankState Bank of IndiaRaipur
Baroda Gujarat Gramin BankBank of BarodaBharuch
Dena Gujarat Gramin BankDena BankGandhinagar
Saurashtra Gramin BankState Bank of IndiaRajkot
Sarva Haryana Gramin BankPunjab National BankRohtak
Himachal Pradesh Gramin BankPunjab National BankMandi
Ellaquai Dehati BankState Bank of IndiaSrinagar
J&K Grameen BankJ&K Bank Ltd.Jammu
Vananchal Gramin BankState Bank of IndiaRanchi
Jharkhand Gramin BankBank of IndiaRanchi
Pragathi Krishna Gramin BankCanara BankBallari
Kaveri Gramin BankState Bank of IndiaMysuru
Karnataka Vikas Grameena BankSyndicate BankDharwad
Kerala Gramin BankCanara BankMallapuram
Narmada Jhabua Gramin Bank Bank of IndiaIndore
Central Madhya Pradesh Gramin BankCentral Bank of IndiaIndore
Madhyanchal Gramin BankState Bank of IndiaSagar
Vidarbha Konkan Gramin BankBank of IndiaNagpur
Maharashtra Gramin BankBank of MaharashtraAurangabad
Manipur Rural BankUnited Bank of IndiaImphal
Meghalaya Rural BankState Bank of IndiaShillong
Mizoram Rural BankState Bank of IndiaAizawl
Nagaland Rural BankState Bank of IndiaKohima
Odisha Gramya BankIndian Overseas BankBhubaneshwar
Utkal Grameen BankState Bank of IndiaBolangir
Puduvai Bharathiar Grama BankIndian BankPuducherry
Punjab Gramin BankPunjab National BankKapurthala
Malwa Gramin BankState Bank of IndiaSangrur
Sutlej Gramin BankBhatinda
Baroda Rajasthan Kshetriya Gramin BankBank of BarodaAjmer
Rajasthan Marudhara Gramin BankState Bank of IndiaJodhpur
Pallavan Grama BankIndian BankSalem
Pandyan Grama BankIndian Overseas BankVirudhunagar
Telangana Grameena BankState Bank of IndiaHyderabad
Tripura Gramin BankUnited Bank of IndiaAgartala
Gramin Bank of AryavartBank of IndiaLucknow
Allahabad UP Gramin BankAllahabad BankBanda
Baroda Uttar Pradesh Gramin BankBank of BarodaRaebareli
Kashi Gomti Samyut Gramin BankUnion Bank of IndiaVaranasi
Sarva UP Gramin BankPunjab National BankMeerut
Prathama UP Gramin BankSyndicate BankMoradabad
Purvanchal BankState Bank of IndiaGorakhpur
Uttarakhand Gramin BankState Bank of IndiaDehradun
Bangiya Gramin Vikash BankUnited Bank of IndiaMurshidabad
Paschim Banga Gramin BankUCO BankHowrah
Uttarbanga Kshetriya Gramin BankCentral Bank of IndiaCoochbehar

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:

  1. Providing banking services in the rural areas of the states.
  2. Creating awareness among rural people regarding money saving, financial balance, and banking schemes.
  3. Providing loans and financial assistance for the agricultural sector, rural people, small farmers, and artisans.
  4. 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

What are Regional Rural Banks?

Regional Rural Banks are the commercial banks that function in the regional area for rural and agricultural sector.

How many RRBs are there in India?

Currently, there are 56 RRBs operating in India.

Who owns most of the equity in Regional rural banks?

Central Government owns 50% equity of regional rural banks.

Who regulates the Regional Rural Banks?

RBI and NABARD regulate the regional rural banks.