Which is the First Regional Rural Bank in India? – Know the History of RRBs

RRBs are one of the highly probable topics to be asked in the banking exam, such as IBPS RRB Officer/ Assistant, IBPS PO/Clerk, SBI PO/Clerk, and NABARD Grade A/B. Therefore, it becomes essential for candidates to have complete knowledge about the Regional Rural Banks in India. The questions in the exams often come from this topic. The recently asked questions include the history and origin of RRBs, their ownership structure, their objectives and functions, recent reforms and mergers, and their role in overall financial inclusion. Continue reading below to know which is the first Regional Rural Bank in India and the complete history of RRBs.

Establishment of First RRB – A Brief History

In the early 1970s, small farmers, labourers, and artisans relied on moneylenders and other informal sources for their financial requirements. The idea of RRBs came from the Narasimham Committee Report (1975). On 2nd October 1975, the first 5 RRBs were established. On 2nd October 1975, our first RRB Prathama Bank was launched. It is located in Moradabad, Uttar Pradesh. It recommended a new type of bank that combined the local fee of a cooperative bank and the professional structure of commercial banks. In 1976, the Regional Rural Banks Act, 1976 was enacted to provide a legal framework. In the 1980s to 1990s, RRBs expanded and reached the rural corners. From 2005 onwards, the government initiated the merger and consolidation of RRBs for better efficiency. At present, 43 RRBs exist in India, operating with better tech and wider services.

Timeline of Milestones Achieved by RRBs

The timeline of the key milestones achieved by the RRBs over a long period from the 1970s to the present is provided in the table below.

Year	Event
1975	RRBs were conceptualized and first 5 RRBs were established.
2 Oct 1975	Prathama Bank, India’s first RRB, was launched.
1976	Regional Rural Banks Act, 1976 was enacted to provide legal framework.
1980s–90s	RRBs expanded rapidly across the country, reaching rural corners.
2005 onwards	Govt initiated merger and consolidation of RRBs for efficiency.
Present	As of now, 43 RRBs exist in India, operating with better tech and wider services.

About Prathama Bank – The First RRB

The first RRB in India was Prathama Bank, established on 2nd October 1975. It was sponsored by the Syndicate Bank. It is located in Moradabad, Uttar Pradesh. Prathama Bank holds the distinction of being the first RRB to start operations in India. It marked the beginning of the rural banking revolution in India.

Detail	Information
First RRB in India	Prathama Bank
Date of Establishment	2nd October 1975
Place	Moradabad, Uttar Pradesh
Sponsor Bank	Syndicate Bank
Purpose	Financial inclusion in rural India

Significance of the Prathama Bank

The first Regional Rural Bank of India, Prathama Bank, served as a model for future rural banks. It played an important role in extended agricultural loans, promoted self-employment, and implemented government schemes in the rural areas. It also encouraged the government to replicate the RRB model across India.

• Served as a model for future rural banks.
• Played a crucial role in:
  • Extending agricultural loans
  • Promoting self-employment
  • Implementing government schemes in rural belts
• Its success encouraged the government to replicate the RRB model across India.

First Five RRBs in India – Established on 2nd October 1975

The first 5 RRBs in India were established on the same day, that is, on 2nd October, 1975, in different states. The first was the Prathama Bank, Uttar Pradesh. The second was the Gaur Gramin Bank, Rajasthan. The third was Swarna Rekha Gramin Bank, Jharkhand. The fourth was Dakshin Bihar Gramin Bank, Bihar. And the fifth was Himachal Gramin Bank, Himachal Pradesh. This sequence is based on the official documentation. In practice, all five banks were announced simultaneously. The information about their head office and sponsored bank is mentioned in the table below.

RRB Name	Order	State	Head Office	Sponsor Bank
Prathama Bank	1st	Uttar Pradesh	Moradabad	Syndicate Bank
Gaur Gramin Bank	2nd	Rajasthan	Gorakhpur	UCO Bank
Swarna Rekha Gramin Bank	3rd	Bihar (now Jharkhand)	Ranchi	State Bank of India
Dakshin Bihar Gramin Bank	4th	Bihar	Gaya	Punjab National Bank
Himachal Gramin Bank	5th	Himachal Pradesh	Mandi	Punjab National Bank

Summary

The first RRB established in India was Prathama Bank, and along with it, four other RRBs were established on the same day. The history of RRB includes its beginning and its growth over the decades. Currently, a total of 43 RRBs are operating in India. The main idea of establishing RRBs was to encourage financial inclusion in rural areas. Their main purpose is to serve as a combination of a cooperative bank and a commercial bank.

Banking Exams Free Mock Test

IBPS RRB PO Free Mock Test	IBPS PO Free Mock Test
SBI PO Free Mock Test	IBPS SO Free Mock Test
IBPS RRB Clerk Free Mock Test	IBPS Clerk Free Mock Test

Join our exclusive Telegram group, where our experts are ready to answer all your queries, guide you in banking exam preparation, and give personalised tips to boost your success. Get access to real-time solutions, expert advice, and valuable resources to improve your study journey.

FAQs