Regional Rural Banks

May 15, 2023

Department of Financial Services (DFS), Ministry of Finance has conducted a review meeting of financial performance of RRBs.
RRBs were formed under RRB Act, 1976 to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas.
These were established as per the recommendations of the Narasimham Committee to cater to the rural credit needs of the farming and other rural communities.
The Prathama Grameen Bank, sponsored by The Syndicate Bank, was the first bank to be established on 2nd October 1975.
RRBs are regulated by RBI and supervised by NABARD.
RRBs’ capital is contributed by Government of India, State Government and Sponsor Bank in proportion of 50:35:15.