| Company type | Government owned banks |
|---|---|
| Industry | Banking,financial services |
| Founded | 2 October 1975; 50 years ago (1975-10-02) |
Number of locations | 21871[citation needed] |
| Products | Retail banking,corporate banking,investment banking,mortgage loans,wealth management,debit cards,UPI,internet banking,mobile banking,finance and insurance |
| Owner | Government of India (50%), nationalised banks (35%), state governments (15%) |
| Parent | Ministry of Finance,Government of India |
TheRegional Rural Banks (RRBs) aregovernment owned scheduled commercial banks of India that operate at the regional level in different states ofIndia. These banks are under theownership of theMinistry of Finance,Government of India, Sponsored Bank and concerned State Government in the ratio of 50:35:15 respectively. They were created to serve rural areas with basic banking andfinancial services. However, RRBs also have urban branches.
The Government of India enacted the Regional Rural Banks Act in 1976, which led to the establishment of the first five RRBs on 2 October 1975. The first RRB was Prathama Bank, which was sponsored by Syndicate Bank and had its headquarters in Moradabad, Uttar Pradesh.
The area of operation is limited to the area notified by the government of India covering, and it covers one or more districts in the State. RRBs perform various functions such as providing banking facilities to rural and semi-urban areas, carrying out government operations like disbursement of wages ofMGNREGA workers and distribution of pensions, providing para-banking facilities like locker facilities, debit and credit cards, mobile banking, internet banking, and UPI services.[1] There are currently 28 Regional Rural Banks across India; the 'One State-One RRB' strategy, which aims to rationalize costs and streamline operations by consolidating 43 RRBs into 28 banks, it was put into action by the finance ministry from May 1, 2025.[2]
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. As a result, five RRBs were set up on 2 October 1975 on the recommendations of the Narsimhan Committee on Rural Credit, during the tenure ofIndira Gandhi's government. The purpose was to include rural areas into the economic mainstream since around 70% of the Indian population was rural.
Prathama Bank, with head office inMoradabad, Uttar Pradesh was the first RRB. It was sponsored bySyndicate Bank and had an authorized capital of Rs. 5 crore.[3] The other four RRBs were Gaur Gramin Bank (sponsored byUCO Bank), Gorakhpur Kshetriya Gramin Bank (sponsored byState Bank of India), Haryana Kshetriya Gramin Bank (sponsored byPunjab National Bank), and Jaipur-Nagaur Anchalik Gramin Bank (sponsored byUCO Bank).
The RRBs were owned by the central government, state government, and the sponsoring bank with 50%, 15%, and 35% shareholding respectively.[4]
A review of the RRBs in August 2009 by the Union Finance Minister revealed that a large number of RRBs had a lowCapital to Risk weighted Assets Ratio (CRAR). A committee was constituted in September 2009 under the chairmanship ofK C Chakrabarty,[5] the deputy governor of theReserve Bank of India (RBI) to analyse the financials of the RRBs and 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.[6][7]
The committee recommended RRBs to have a CRAR of at least 7% on 31 March 2011 and at least 9% from 31 March 2012 onwards. The recapitalization requirement of Rs 2,200.00 crore for 40 of the 82 RRBs were 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% as of 31 March 2012 and thereafter, on their own. A fund of ₹100 crore to be set up for training and capacity building of the RRB staff.[6]
The Government of India approved the recapitalization of the RRBs to improve their CRAR in the following manner:
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 nine departments. The following is the decision making hierarchy of officials in a RRB.
RRBs periodically go through a process of amalgamation. In January 2013, 25 RRBs were amalgamated into 10 RRBs, totaling 67 RRBs.[8] In March 2016, there were 56 RRBs, covering 525 districts with a network of 14,494 branches.[9] In April 2020, there were 43 RRBs.[10] As of 1 May 2025, there are 28 RRBs in India.
RRBs 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:[11]
For the incorporation, regulation and winding up of Regional Rural Banks with a view to developing therural 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.
The identity boasts symmetry, stability and craftsmanship.
Key elements include
The Regional Rural Bank logo selection process involved a public poll conducted byNABARD in June 2025 to choose a new, common logo for the amalgamatedRegional Rural Banks in India, the initiative aimed at creating a unified brand identity for rural banking after the amalgamation of several RRBs. the poll allowed participants to vote on six logo concepts and nine design variations. The initiative was calledOneRRBOneLogo reflecting the vision of having a single identity for the RRBs.
There are 28 regional rural banks in India as of 23 oct 2025.
