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REGIONAL RURAL BANKS -- a few points

also go through the web site of respective RRB before attending interview.

Regional Rural Banks are the banking organizations being operated in different states of India. They have been created to serve the rural areas with banking and financial services. However, RRB's may have branches set up for urban operations and there area of operation may include urban areas too.


The main purpose of RRB's is to mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural laborers and rural artisans. The area of operation of RRBs is limited to the area as notified by Government of India covering one or more districts in the State. RRB's also perform a variety of different functions. RRB's perform various functions in following heads • Providing banking facilities to rural and semi-urban areas. Carrying out government operations like disbursement of wages of MGNREGA workers, distribution of pensions etc. • Providing Para-Banking facilities like locker facilities, debit and credit cards.


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. These were set up on the recommendations of the Narsimha Committee during the tenure of Indira Gandhi's government with a view to include rural areas into economic mainstream since that time about 70% of the Indian Population was of Rural Orientation. The development process of RRBs started on 2 October 1975 with the with forming the first RRB, the Prathama Grameen Bank. Also on 2 October 1975, five regional rural banks were set up on with a total authorised capital of Rs. 100 crore ($ 10 Million) which later augmented to 500 crore ($ 50 Million). There were five commercial banks, Punjab National Bank, State Bank of India, Syndicate Bank, United Bank of India and United Commercial Bank, which sponsored the regional rural banks. Earlier Reserve Bank of India had laid down ceilings on the rate of interest to be charged by these RRBs. However from August 1996 the RRBs have been granted freedom to fix rates of interest, which is usually in the range of 14-18% for advances.

Recapitalization of Regional Rural Banks (RRBs)[edit]

Subsequent to review of the financial status of RRBs by the Union Finance Minister in August, 2009, it was felt that a large number of RRBs had a low Capital to Risk weighted Assets Ratio (CRAR). A committee was there­fore constituted in September, 2009 under the Chairmanship of Or K C Chakrabarty, Deputy Governor, RBI to analyse the financials of the RRBs and to 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. The following points were recommended by the committee:
  • RRBs to have CRAR of at least 7% as on 31 March 2011 and at least 9% from 31 March 2012 onwards. recapitalisation requirement of Rs. 2,200.00 crore for 40 of the 82 RRBs. This amount is 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% ifs on 31 st March 2012 and thereafter on their own.
  • A fund of Rs. 100 crore to be set up for training and ca­pacity building of the RRB staff.
The Government of India recently approved the recapi­talization of Regional Rural Banks (RRBs) to im­prove their Capital to Risk Weighted Assets Ratio CRAR) in the following manner:
  • Share of Central Government i.e. Rs.1, 100 crore will be released as per provisions made by the Department of Expenditure in 2010-11 and 2011-12. However, release of Government of India share will be contingent on propor­tionate release of State Government and Sponsor Bank share.
  • A capacity building fund with a corpus of Rs.100 crore to be set up by Central Government with NABARD for training and capacity building of the RRB staff in the insti­tution of NABARD and other reputed institu­tions. The functioning of the Fund will be peri­odically reviewed by the Central Government. An Action Plan will be prepared by NABARD in this regard and sent to Government for ap­proval.
  • Additional amount of Rs. 700 crore as contin­gency fund to meet the requirement of the weak RRBs, particularly those in the North Eastern. and Eastern Region, the necessary provisioh will be made in the Budget as and when the need arises.

Organizational Structure[edit]

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 seven departments.
The following is the list of officers in decreasing order of their rank in the organization.
  • Chairman & Managing Director
  • Executive Director
  • General Manager
  • Deputy General Manager
  • Assistant General Manager
  • Chief Manager
  • Senior Manager
  • Manager
  • Officer
  • Assistants


Currently, RRB's are going through a process of merger and consolidation 25 RRBs have been merged in January 2013 into 10 RRBs this counts 67 RRBs till 1st week of June 2013. On 31 March 2006, there were 133 RRBs (post-merger) covering 525 districts with a network of 14,494 branches. On RRBs were originally conceived as low cost institutions having a rural ethos, local feel and pro poor focus. However, within a very short time, most banks were making losses. The original assumptions as to the low cost nature of these institutions were belied.This may be again merged in near future.At present there are 67 RRB's in India.

Legal Existence and Protection[edit]

RRB's 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
"For the incorporation, regulation and winding up of Regional Rural Banks with a view to developing the rural 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".
RRB's are therefore created with a view to develop rural economy.

List of Regional Rural Banks[edit]

  1. Allahabad UP Gramin Bank
  2. Andhra Pradesh Grameena Vikas Bank
  3. Andhra Pragathi Grameena Bank
  4. Arunachal Pradesh Rural Bank
  5. Aryavart Gramin Bank
  6. Assam Gramin Vikash Bank
  7. Baitarani Gramya Bank
  8. Ballia –Etawah Gramin Bank
  9. Bangiya Gramin Vikash Bank
  10. Baroda Gujarat Gramin Bank
  11. Baroda Rajasthan Gramin Bank
  12. Baroda Uttar Pradesh Gramin Bank
  13. Bihar Kshetriya Gramin Bank
  14. Cauvery Kalpatharu Grameena Bank
  15. Chaitanya Godavari Grameena Bank
  16. Chhattisgarh Gramin Bank
  17. Chikmagalur-Kodagu Grameena Bank
  18. Deccan Grameena Bank
  19. Dena Gujarat Gramin Bank
  20. Durg-Rajnandgaon Gramin Bank
  21. Ellaquai Dehati Bank
  22. Gurgaon Gramin Bank
  23. Hadoti Kshetriya Gramin Bank
  24. Haryana Gramin Bank
  25. Himachal Gramin Bank
  26. Jaipur Thar Gramin Bank
  27. Jhabua Dhar Kshetriya Gramin Bank
  28. Jharkhand Gramin Bank
  29. Kalinga Gramya Bank
  30. Karnataka Vikas Grameena Bank
  31. Kashi Gomti Samyut Gramin Bank
  32. Kerala Gramin Bank
  33. Krishna Grameena Bank - Amalgamated with PGB on 23 Aug 13 - New name: Pragathi Krishna Gramin Bank
  34. Kshetriya Kisan Gramin Bank
  35. Langpi Dehangi Rural Bank
  36. Madhumalti Building Gupte Marg
  37. Madhya Bihar Gramin Bank
  38. Mahakaushal Kshetriya Gramin Bank
  39. Maharashtra Gramin Bank
  40. Malwa Gramin Bank
  41. Manipur Rural Bank
  42. Marwar Ganganagar Bikaner Gramin Bank
  43. Meghalaya Rural Bank
  44. Mewar Anchalik Gramin Bank
  45. Mizoram Rural Bank
  46. Nagaland Rural Bank
  47. Nainital Almora Kshetriya Gramin Bank
  48. Narmada Malwa Gramin Bank
  49. Neelachal Gramya Bank
  50. Pallavan Grama Bank
  51. Pandyan Grama Bank
  52. Parvatiya Gramin Bank
  53. Paschim Banga Gramin Bank
  54. Pragathi Gramin Bank; After amalgamation on 23 Aug 13 new name : Pragathi Krishna Gramin Bank
  55. Prathama Bank
  56. Puduvai Bharathiar Grama Bank
  57. Punjab Gramin Bank
  58. Purvanchal Gramin Bank
  59. Rajasthan Gramin Bank
  60. Rushikulya Gramya Bank
  61. Samastipur Kshetriya Gramin Bank
  62. Saptagiri Grameena Bank
  63. Sarva UP Gramin Bank
  64. Satpura Narmada Kshetriya
  65. Saurashtra Gramin Bank
  66. mandhyanchal grameen bank
  67. Shreyas Gramin Bank
  68. Surguja Kshetriya Gramin Bank
  69. Sutlej Kshetriya Gramin Bank
  70. Tripura Gramin Bank
  71. Utkal Gramya Bank
  72. Uttar Banga Kshetriya Gramin Bank
  73. Uttar Bihar Gramin Bank
  74. Uttaranchal Gramin Bank
  75. Vananchal Gramin Bank
  76. Vidharbha Kshetriya Gramin Bank
  77. Visveshvaraya Grameena Bank
  78. Wainganga Krishna Gramin Bank

1 comment:

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