Rural Banks/Regional Rural Banks ( RRB)

Regional Rural Banks or Grameen Banks were established in 1975 with the aim of agricultural, economical and industrial development in rural areas. They were established as subsidiary banks of nationalized banks. Committee related to the formation of Gramin Banks is Narasimham Committee. Rural banks in India operate under Regional Rural Banks Act (1976). 50 percent of the shares of Grameen Banks are held by the Central Government, 15 percent by the State Government and 35 percent by the sponsoring bank. The objectives of Grameen Banks are the development of backward areas and supporting the traditional employment sector. Like other banks, all types of transactions are carried out in these banks. Currently, there are 45 Grameen Banks. The first regional rural bank in India is Prathama Grameen Bank (Moradabad, Uttar Pradesh) and was established on 2nd October 1975. It is sponsored by Syndicate Bank. The government's goal is to merge them with the parent institution and bring down the number of Grameen Banks. India's largest regional rural bank is Kerala Grameen Bank. Kerala Grameen Bank was formed by merging South Malabar Grameen Bank and North Malabar Grameen Bank under sponsership of Canara Bank. The official identity phrase and tagline of of Kerala Grameen Bank is 'Kerala's own bank'. Malappuram is the headquarters of Kerala Grameen Bank. State with the highest number of Regional Rural Banks is Uttar Pradesh. The states of Goa and Sikkim do not have any Regional Rural Banks (RRBs). There are 43 regional rural banks in India as of 1 January 2025.