Demystifying Regional Rural Banks (RRB) in India: In-Depth Analysis and the Latest Data
Regional Rural Banks (RRBs) also known as Gramin banks, are Indian scheduled banks (Government banks) operating at regional level in different States of India. The primary role of the RRB is to be the banker of the backward and rural areas of our country.
The big, nationalized banks and the private banks are mostly located in cities and towns. Although they try and open some branches in the rural areas as well, but their reach is limited. So RRBs were created within a state.
RRBs are looked over by the NABARD (National Bank for Agricultural and Rural Development) and also by a mentor bank which is usually a big and nationalized bank like SBI or PNB etc.
However, RRBs may have branches set up for urban operations and their area of operation may include urban areas too.
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. RRBs also perform a variety of different functions. RRBs 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.
– Small financial banks.
– financing dairy works, fishery works or all kind of countryside valid works and Businesses.
– financing village school children in need of bank accounts to get scholarship, bicycles and school uniforms.
Brief History of RRBs:
Regional Rural Banks were established under the provisions of an Ordinance passed in 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 Narshimham committee Working Group 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 forming of the first RRB, the Prathama Bank with authorized capital of ₹5 Crore at its starting.
RRBs Organizational Frame:(Updated As on 2019)
The following is the administrator in a Regional Rural Bank.
- Board of Directors
- Chairman& Managing Director
- General Manager
- Chief Manager/Regional Managers
- Senior Manager
- Manager
- Officer/Assist
Salary of Officers/Managers & Clerks: (Updated as on 2019)
Designation – Manager Trainee in the Gramin Bank
Probation Period – 2 Years (After Probation Designation will be – Assistant Manager)
Salary – INR 29,350 Age Limit 18 to 30 Years and gradually in 5 years candidates get Approx Rs. 36000- 39000 per month (Also varies as tax deducts).
Officer Scale is also termed as the General Bank Officer post. The Officers will get 100% Dear Allowance (DA)
Promotion: Starting In 2 years
Regional Rural Banks List: List of RRB’s Head Office’s Sponsored Bank
Regional Rural Banks in Andhra Pradesh, Local Language – Telugu
- Andhra Pragathi Grameena Bank Kadapa—Syndicate Bank
- Chaitanya Godavari Grameena Bank Guntur—Andhra Bank
- Saptagiri Grameena Bank Chittor—Indian Bank
Regional Rural Banks in Arunachal Pradesh, Local Language – English, Hindi
- Arunachal Pradesh Rural Bank Naharilagun—State Bank of India
Regional Rural Banks in Assam, Local Language – Assamese, Bengali, Bodo
- Assam Gramin Vikash Bank Guwahati—United Bank of India
- Langpi Dehangi Rural Bank Diphu—State Bank of India
Regional Rural Banks in Bihar, Local Language – Bhojpuri
- Bihar Gramin Bank Begusarai—Uco Bank
- Madhya Bihar Gramin Bank Patna—Punjab National Bank
- Uttar Bihar Gramin Bank Muzaffarpur—Central Bank of India
Regional Rural Banks in Chhattisgarh, Local Language – Chhattisgarhi
- Chhattisgarh Rajya Gramin Bank Raipur—State Bank of India
Regional Rural Banks in Gujarat, Local Language – Gujarati
- Baroda Gujarat Gramin Bank Bharuch—Bank of Baroda
- Dena Gujarat Gramin Bank Gandhinagar—Dena Bank
- Saurashtra Gramin Bank Rajkot—State Bank of India
Regional Rural Banks in Haryana, Local Language – Haryanvi
- Sarva Haryana Gramin Bank Rohtak—Punjab National Bank
Regional Rural Banks in Himachal Pradesh, Local Language – Pahari
- Himachal Pradesh Gramin Bank Mandi—Punjab National Bank
Regional Rural Banks in Jammu and Kashmir, Local Languages – Dogri, Kashmiri, Punjabi, Urdu, Gojri, Pahari, Ladakhi, Balti (Palli), Dardi, Hindi
- Ellaquai Dehati Bank Srinagar—State Bank of India
- J&K Grameen Bank Jammu—J & K Bank Ltd
Regional Rural Banks in Jharkhand, Local Language – Hindi
- Vananchal Gramin Bank Dumka—State Bank of India
- Jharkhand Gramin Bank Ranchi—Bank of India
Regional Rural Banks in Karnataka, Local Language – Kannada
- Kaveri Grameena Bank Mysore—State Bank of India
- Karnataka Vikas Grameena Bank Dharwad—Syndicate Bank
- Pragathi Krishna Grameena Bank Bellary—Canara Bank
Regional Rural Banks in Kerala, Local Language – Malayalam
- Kerala Gramin Bank Mallapuram—Canara Bank
Regional Rural Banks in Madhya Pradesh, Local Language – Hindi
- Narmada Jhabua Gramin Bank Indore—Bank of India
- Madhyachal Gramin Bank Sagar—State Bank of India
- Central Madhya Pradesh Gramin Bank Chhindwara—Central Bank of India
Regional Rural Banks in Maharashtra, Local Language – Marathi
- Vidarbha Konkan Gramin Bank Nagpur—Bank of India
- Maharashtra Gramin Bank Aurangabad—Bank of Maharashtra
Regional Rural Banks in Manipur, Local Language – Manipuri
- Manipur Rural Bank Imphal—United Bank of India
Regional Rural Banks in Meghalaya, Local Language – Khasi
- Meghalaya Rural Bank Shillong State—Bank of India
Regional Rural Banks in Mizoram, Local Language – Mizo
- Mizoram Rural Bank Aizal—State Bank of India
Regional Rural Banks in Nagaland, Local Language – Nagamese
- Nagaland Rural Bank Kohima State—Bank of India
Regional Rural Banks in Odisha, Local Language – Oriya
- Odisha Gramya Bank Bhubaneshwar—Indian Overseas Bank
- Utkal Grameen Bank Bolangir—State Bank of India
Regional Rural Banks in Puducherry, Local Language – Tamil
- Puduvai Bharathiar Grama Bank Puducherry—Indian Bank
Regional Rural Banks in Punjab, Local Language – Punjabi
- Malwa Gramin Bank Sangrur—State Bank of India
- Punjab Gramin Bank Kapurthala—Punjab National Bank
- Sutlej Gramin Bank Bhatinda—Punjab & Sind Bank
Regional Rural Banks in Rajasthan, Local Language – Marwari, Hindi
- Baroda Rajasthan Kshetriya Gramin Bank Ajmer—Bank of Baroda
- Rajasthan Marudhara Gramin Bank Jodhpur—State Bank of India
Regional Rural Banks in Tamil Nadu, Local Language – Tamil
- Pallavan Grama Bank Salem—Indian Bank
- Pandyan Grama Bank Virudhunagar—Indian Overseas Bank
Regional Rural Banks in Telangana, Local Language – Telugu, Urdu
- Telangana Grameena Bank Hyderabad—State Bank of India
- Andhra Pradesh Grameena Vikas Bank Warangal—State Bank of India
Regional Rural Banks in Tripura, Local Language – Bengali
- Tripura Gramin Bank Agartala—United Bank of India
Regional Rural Banks Uttar Pradesh, Local Language – Hindi
- Allahabad UP Gramin Bank Banda—Allahabad Bank
- Gramin Bank of Aryavart Lucknow—Bank of India
- Baroda UP Gramin Bank Raibareilly—Bank of Baroda
- Kashi Gomti Samyut Gramin Bank Varanasi—Union Bank of India
- Prathama Bank Moradabad—Syndicate Bank
- Sarva UP Gramin Bank Meerut—Punjab National Bank
- Purvanchal Bank Gorakhpur—State Bank of India
Regional Rural Banks in Uttarakhand, Local Language – Garhwali
- Uttarakhand Gramin Bank Dehradun—State Bank of India
Regional Rural Banks in West Bengal, Local Language – Bengali & English
- Bangiya Gramin Vikash Bank Murshidabad—United Bank of India
- Paschim Banga Gramin Bank Howrah—Uco Bank
- Uttar Banga Kshetriya Gramin Bank Cooch Behar—Central Bank of India
Recent Update
The government of India is looking at the possibility of merging regional rural banks (RRBs) operating within the same state and has urged the state-owned banks to explore such options, as it wants further consolidation among RRBs. It eventually wants to bring them down to a more manageable number of 10-15. There are 56 RRBs functioning in the country, and State Bank of India, the largest bank, is the biggest sponsor with 14 RRBs. Already, around 10 have been merged which will be effective from April 1 this year.
“Ideally, we would like to have them reduced by 36 by the end of this fiscal,” said a senior government official, adding the idea is that rather than three or four regional lenders operating in a state, there should be one bank which leverages its strong regional and market connect. “In some lead banks which have more presence in a particular area, they can take over the stake of another lender in an RRB for purposes of synergy and efficiencies,” he said. At present, the Centre holds 50% stake in RRBs, while 35% and 15% are with the sponsor banks and state governments, respectively. In 2015, the government had passed the Regional Rural Banks (Amendment) Bill, which seeks to enhance authorization and issued capital of RRBs, strengthen their capital base and bring flexibility in the shareholding between central government, state government and sponsor bank.
The finance ministry has already directed public sector banks (PSBs) to consolidate operations in the same geography and take into account operations of other state-run lenders. “Bank boards have been asked to draw up business unit-wise approved plans, closure of nonviable branches,” said the above quoted official.
“Further, strengthening RRBs will help them play a greater role in financial inclusion and meeting credit requirements of rural areas,” the above quoted official said. The government in the past few years have been trying to consolidate RRBs. Earlier in January, three regional rural banks (RRBs)—Punjab Gramin Bank, Malwa Gramin Bank and Sutlej Gramin Bank—were merged into a single entity. In February, it approved merger of two RRBs in Karnataka—Kaveri Grameena Bank and Pragathi Krishna Grameena Bank. Canara Bank will be the sponsor bank for the merged entity.
“Further, strengthening RRBs will help them play a greater role in financial inclusion and meeting credit requirements of rural areas,” the above quoted official said. The government in the past few years have been trying to consolidate RRBs. Earlier in January, three regional rural banks (RRBs)—Punjab Gramin Bank, Malwa Gramin Bank and Sutlej Gramin Bank—were merged into a single entity. In February, it approved merger of two RRBs in Karnataka—Kaveri Grameena Bank and Pragathi Krishna Grameena Bank. Canara Bank will be the sponsor bank for the merged entity.