Regional Rural Bank Example

The first Regional Rural Bank formed in 1975. The first RRB was established on the 2nd of October on Gandhi Jayanti. RRBs are regional commercial banks that have the characteristics of cooperative societies as well. These banks are established to bridge the gap between urban users and rural users of bank facilities. It was observed that the Indian banking sector was not flourishing and had stunted growth and development. The governments pushed for financial development in under-developed regions of the states. The headquarter of RRB is in Andhra Pradesh. But for each state, the RRB has separate headquarters for operations. 

RRB

The Regional Rural Bank Example includes looking at various RRBs in different stages. The RRB was established through a cooperative measure in 1975 and the Regional Rural Bank Act was passed in 1976. The equity of all these RRBs is owned and shared by the State governments, Central governments, and sponsor banks. The proportion is 50:30:15. The headquarter of RRB depends on which particular bank is in question. Each state has a separate headquarter for its bank. The headquarters of RRB is determined regionally. Under each state, there could be multiple RRBs. They can operate on both the district and the state level depending on the population of the size of the state. 

Headquarter of RRB

States like West Bengal, Jammu, Kashmir, Andhra Pradesh, Haryana, Gujarat, Chhattisgarh, Manipur, Odisha, Uttarakhand, Himachal Pradesh, Tripura, Meghalaya, Bihar, Kerala, Karnataka, Punjab, Assam, Puducherry, Jharkhand, Tamil Nadu, Telangana, and Maharashtra have their separate headquarter of RRB. The State of Andhra Pradesh has the following RRBs:

• Saptagiri Gramin
• Chaitanya Godavari Gramin
• Andhra Pragathi Grameena
• Andhra Pradesh Grameena Vikas

The State of West Bengal has the following RRBs:

• Paschim Banga Gramin
• Uttarbanga Kshetriya Gramin
• Bangiya Gramin Vikash

RRBs are legally recognised and have been empowered to carry out various financial transactions. The RRBs have constitutional and legal significance. 

History of RRB

The first Regional Rural Bank formed in 1975. They were formed 47 years ago in 1975 and were legalized in 1976. There were 5 such banks initially but were then multiplied and reached 25 within just a year. Now they operate in over 525 districts. The first bank to open up was the Prathama Bank in Moradabad in Uttar Pradesh. It was under the sponsorship of Syndicate Bank. The RRBs were formed under the direction of the Narasimham Committee. The other four banks were sponsored by SBI, UCO Bank, and Punjab National Bank. The RRBs were established to strengthen the rural economy. 

Regional Rural Bank Example

A regional Rural Bank example would be Andhra Pragathi Grameena Bank. It is a scheduled commercial bank and was formed in 2006. It provides banking facilities as per the regulations of the Regional Rural Bank Act in Kadapa, Ananthapuram, Prakasam, Nellore, and Kurnool districts of Andhra Pradesh. It is owned by the Ministry of Finance.  This RRB was formed from the amalgamation of Pinakina Grameena bank, Sri Anantha Grameena Bank, and Rayalaseema Grameena Bank. The headquarters of RRB is in Kadapa. It is currently in operation in over 5 districts and was announced as the best bank in 2010. 

Conclusion

There are around 43 RRBs at the moment after a period of amalgamation in 2016. Andhra Pradesh has the greatest number of RRBs. After that comes the West Bengal state since it has three RRB under its authority. Andhra Pradesh has 4 RRBs.