{"id":155783,"date":"2025-06-23T18:07:48","date_gmt":"2025-06-23T12:37:48","guid":{"rendered":"https:\/\/www.practicemock.com\/blog\/?p=155783"},"modified":"2025-06-24T16:42:12","modified_gmt":"2025-06-24T11:12:12","slug":"what-is-a-regional-rural-bank","status":"publish","type":"post","link":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/","title":{"rendered":"What is a Regional Rural Bank?- Why were they established?"},"content":{"rendered":"\n<p><\/p>\n\n\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/www.practicemock.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/www.practicemock.com\/blog\/category\/banking-awareness\/\">Banking Awareness<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\">What is a Regional Rural Bank?<\/span><\/span><\/div>\n\n\n<p><\/p>\n\n\n\n<p>The Regional Rural Banks or the <strong>RRBs, are scheduled commercial banks in India<\/strong>. They are jointly owned by the Central Government, the Sponsored bank, and the State Government. They are regulated by the RBI and supervised by the NABARD. They <strong>work particularly in <\/strong>the <strong>rural areas for their financial inclusion<\/strong> and upliftment. 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. As of 2025, there are <strong>a total of 43 RRBs in India.<\/strong> Read till the last to know which is the first Regional Rural Bank in India and the complete history of RRBs.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/ibps-po-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Attempt Free<\/strong> <strong>IBPS PO Mock Test 2025<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Overview of Regional Rural Banks<\/h2>\n\n\n\n<p>The overview of the Regional Rural Bank in India is provided below.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>Description<\/th><\/tr><\/thead><tbody><tr><td><strong>Ownership<\/strong><\/td><td>Jointly owned by:<br>\u2013 Central Government (50%)<br>\u2013 State Government (15%)<br>\u2013 Sponsor Bank (35%)<\/td><\/tr><tr><td><strong>Established Under<\/strong><\/td><td>Regional Rural Banks Act, <strong>1976<\/strong><\/td><\/tr><tr><td><strong>Supervised By<\/strong><\/td><td><strong>NABARD<\/strong> (National Bank for Agriculture and Rural Development)<\/td><\/tr><tr><td><strong>Area of Operation<\/strong><\/td><td>Operate within <strong>one or more districts<\/strong> of a state (defined geographical region)<\/td><\/tr><tr><td><strong>Type of Bank<\/strong><\/td><td>Scheduled commercial banks with development objectives<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/ibps-rrb-assistant-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Attempt Free<\/strong> <strong>RRB Clerk Mock Test 2025<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Regional Rural Bank?<\/h2>\n\n\n\n<p>A <strong>Regional Rural Bank (RRB)<\/strong> is a type of <strong>scheduled commercial bank<\/strong> in India that was created to serve <strong>rural and semi-urban areas<\/strong>. It works under RBI guidelines and is supervised by the NABARD. These banks operate to promote <strong>financial inclusion<\/strong> by providing banking services to <strong>small farmers, rural artisans, agricultural laborers, and small entrepreneurs<\/strong>. The idea of RRBs came from the <strong>Narasimham Committee Report <\/strong>(1975). On <strong>2nd October 1975, the first 5 RRBs were established<\/strong>. On 2nd October 1975, our <strong>first RRB Prathama Bank<\/strong> was launched. In 1976, the <strong>Regional Rural Banks Act, 1976<\/strong> was enacted to provide a legal framework. At present, <strong>43 RRBs exist in India,<\/strong> operating with better tech and wider services.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/blog\/which-is-the-first-regional-rural-bank-in-india\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Read About First RRB in India and History of RRB<\/strong>s<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why were they established?<\/h2>\n\n\n\n<p>RRBs were established in <strong>1975<\/strong> based on the recommendations of the <strong>Narasimham Committee<\/strong> and the <strong>Working Group headed by M. Narasimham<\/strong>, with the first RRB being <strong>Prathama Bank<\/strong> (set up in Moradabad, Uttar Pradesh on 2 October 1975).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reasons for Establishment of RRBs in India<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Provide Credit to the Rural Poor<\/strong>\n<ul class=\"wp-block-list\">\n<li>Especially to small and marginal farmers, agricultural laborers, and rural artisans who lacked access to formal credit.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Bridge the Gap Between Commercial and Cooperative Banks<\/strong>\n<ul class=\"wp-block-list\">\n<li>Combine the local feel and developmental approach of cooperatives with the professional approach of commercial banks.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Promote Financial Inclusion<\/strong>\n<ul class=\"wp-block-list\">\n<li>Bring formal banking services to <strong>unbanked and underbanked rural areas<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Reduce Rural Indebtedness<\/strong>\n<ul class=\"wp-block-list\">\n<li>Protect rural people from exploitative informal moneylenders.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Support Government\u2019s Rural Development Plans<\/strong>\n<ul class=\"wp-block-list\">\n<li>Serve as a channel for implementing government schemes (e.g., PMJDY, DBT, KCC, SHG-Bank Linkage).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Encourage Savings in Rural Areas<\/strong>\n<ul class=\"wp-block-list\">\n<li>Mobilize rural savings and channel them into productive use.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/ibps-clerk-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Attempt<\/strong> <strong>IBPS Clerk Free Mock Test 2025<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Difference Between RRBs and Commercial Banks<\/h2>\n\n\n\n<p>The main differences between the Regional Rural Banks and Commercial Banks is discussed in the table below.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Aspect<\/strong><\/th><th><strong>Regional Rural Banks (RRBs)<\/strong><\/th><th><strong>Commercial Banks<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Definition<\/strong><\/td><td>Banks established to serve <strong>rural areas<\/strong> and promote financial inclusion.<\/td><td>Banks that operate for <strong>profit<\/strong> and offer a wide range of financial services.<\/td><\/tr><tr><td><strong>Ownership<\/strong><\/td><td>Jointly owned by Central Govt (50%), State Govt (15%), and Sponsor Bank (35%).<\/td><td>Ownership varies: Government (in PSBs) or private entities (in private banks).<\/td><\/tr><tr><td><strong>Area of Operation<\/strong><\/td><td>Limited to <strong>specific districts<\/strong> (within a state).<\/td><td>Operate <strong>nationwide<\/strong> and even internationally.<\/td><\/tr><tr><td><strong>Target Customers<\/strong><\/td><td>Small &amp; marginal farmers, rural artisans, laborers, SHGs.<\/td><td>All types of customers: individuals, corporates, institutions.<\/td><\/tr><tr><td><strong>Objective<\/strong><\/td><td><strong>Social development<\/strong> + rural credit support.<\/td><td><strong>Profit-oriented<\/strong> with commercial banking services.<\/td><\/tr><tr><td><strong>Services Provided<\/strong><\/td><td>Mainly deposit and credit services for agriculture and rural development.<\/td><td>Full range: retail, corporate, investment, trade finance, etc.<\/td><\/tr><tr><td><strong>Interest Rates<\/strong><\/td><td>Often offer <strong>subsidized or regulated interest rates<\/strong>.<\/td><td>Interest rates are market-driven and vary across banks.<\/td><\/tr><tr><td><strong>Regulatory Body<\/strong><\/td><td>Regulated by <strong>NABARD + RBI<\/strong>.<\/td><td>Regulated by <strong>RBI<\/strong> and governed by Banking Regulation Act.<\/td><\/tr><tr><td><strong>Profit Motive<\/strong><\/td><td><strong>Not-for-profit primarily<\/strong>, but must remain financially viable.<\/td><td><strong>Profit-driven institutions<\/strong>.<\/td><\/tr><tr><td><strong>Branch Network<\/strong><\/td><td>Mostly in <strong>rural and semi-urban areas<\/strong>.<\/td><td>Present in <strong>urban, semi-urban, and rural<\/strong> areas.<\/td><\/tr><tr><td><strong>Examples<\/strong><\/td><td>Aryavart Bank, Kerala Gramin Bank, Baroda UP Bank.<\/td><td>SBI, PNB, HDFC Bank, ICICI Bank, Axis Bank.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/www.practicemock.com\/ibps-rrb-officer-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Attempt<\/strong> <strong>RRB PO Free Mock Test<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Functions of RRBs in India<\/h2>\n\n\n\n<p>RRBs are specialized banks designed to cater to the <strong>rural economy<\/strong>. They combine the strengths of cooperative and commercial banks to perform the following key functions:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Providing Credit to Rural Population<\/h3>\n\n\n\n<p>Regional Rural Banks offer <strong>short-term, medium-term, and long-term loans<\/strong> to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Small and marginal farmers<\/li>\n\n\n\n<li>Agricultural laborers<\/li>\n\n\n\n<li>Rural artisans<\/li>\n\n\n\n<li>Small entrepreneurs<\/li>\n\n\n\n<li>Self-help groups (SHGs)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">2. Promoting Financial Inclusion<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>RRBs provide <strong>basic banking services<\/strong> in underserved rural and remote areas.<\/li>\n\n\n\n<li>They are responsible to open <strong>zero-balance accounts<\/strong>, promote <strong>Jan Dhan Yojana<\/strong>, and expand banking reach.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Support to Agricultural Sector<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The RRBs finance crop production through <strong>Kisan Credit Cards (KCC)<\/strong>.<\/li>\n\n\n\n<li>They fund <strong>farm equipment<\/strong>, <strong>irrigation<\/strong>, <strong>dairy farming<\/strong>, and <strong>fisheries<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">4. Mobilization of Rural Savings<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>RRBs encourage rural people to deposit savings in formal banks.<\/li>\n\n\n\n<li>They offer <strong>savings accounts<\/strong>, <strong>recurring\/fixed deposits<\/strong>, and <strong>deposit schemes<\/strong> suited to rural needs.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">5. Implementation of Government Schemes<\/h3>\n\n\n\n<p>The RRBs act as channels for disbursing loans and subsidies under:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PM Mudra Yojana<\/strong><\/li>\n\n\n\n<li><strong>PMAY \u2013 Gramin<\/strong><\/li>\n\n\n\n<li><strong>DBT (Direct Benefit Transfers)<\/strong><\/li>\n\n\n\n<li><strong>Stand-Up India<\/strong>, <strong>Start-Up India<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">6. Microfinance and SHG Promotion<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They promote <strong>Self-Help Groups (SHGs)<\/strong> by offering loans for self-employment.<\/li>\n\n\n\n<li>And they also assist in <strong>empowering women<\/strong> and promoting <strong>rural entrepreneurship<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">7. Non-Farm Sector Lending <\/h3>\n\n\n\n<p>They provide loans for small businesses in rural areas, like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Handicrafts<\/li>\n\n\n\n<li>Small-scale manufacturing<\/li>\n\n\n\n<li>Retail shops and cottage industries<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">8. Enhancing Employment Opportunities<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>RRBs provide credit for <strong>non-agricultural activities<\/strong> to boost <strong>rural employment<\/strong>.<\/li>\n\n\n\n<li>They facilitate <strong>skill development and entrepreneurship training<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">9. Insurance and Financial Products <\/h3>\n\n\n\n<p>Regional Rural Banks partner with insurance companies to offer:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Crop Insurance<\/li>\n\n\n\n<li>Life and health insurance products<\/li>\n\n\n\n<li>Pension schemes (e.g., Atal Pension Yojana)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">10. Digital and Technological Services<\/h3>\n\n\n\n<p>RRBs offer core banking services, ATM, mobile banking, and <strong>AEPS (Aadhaar Enabled Payment System)<\/strong> in rural regions.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.practicemock.com\/?next=https%3A%2F%2Fwww.practicemock.com%2Fs1pricing%2Findex.php%3Fc%3Dpremium&amp;ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1300\" height=\"500\" src=\"https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/Banking-Max-Course-1-1.png\" alt=\"\" class=\"wp-image-152921\"\/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Summary<\/h2>\n\n\n\n<p>A Regional Rural Bank (RRB) is a type of scheduled commercial bank in India that was created to serve rural and semi-urban areas. RRBs were established in 1975 based on the recommendations of the Narasimham Committee and the Working Group headed by M. Narasimham, with the first RRB being Prathama Bank (set up in Moradabad, Uttar Pradesh, on 2 October 1975). They bridge the Gap Between Commercial and Cooperative Banks and ensure financial inclusion in rural areas. The detailed functions of Regional Rural banks including the implementation of government schemes is provided in the article above.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Banking Exams Free Mock Test<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><a href=\"https:\/\/www.practicemock.com\/ibps-rrb-officer-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\">IBPS RRB PO Free Mock Test <\/a><\/td><td><a href=\"https:\/\/www.practicemock.com\/ibps-po-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\">IBPS PO Free Mock Test <\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.practicemock.com\/sbi-po-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\">SBI PO Free Mock Test<\/a><\/td><td><a href=\"https:\/\/www.practicemock.com\/ibps-so-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\">IBPS SO Free Mock Test<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.practicemock.com\/ibps-rrb-assistant-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\">IBPS RRB Clerk Free Mock Test<\/a><\/td><td><a href=\"https:\/\/www.practicemock.com\/ibps-clerk-test-series\/?ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\">IBPS Clerk Free Mock Test<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-text-align-center\"><em><strong>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. <\/strong><\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-vivid-red-background-color has-text-color has-background wp-element-button\" href=\"https:\/\/t.me\/bankgovtjobexamprep\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>PracticeMock Telegram group Link<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.practicemock.com\/?next=https%3A%2F%2Fwww.practicemock.com%2Fs1pricing%2Findex.php%3Fc%3Dpremium&amp;ref=13280\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1141\" height=\"550\" src=\"https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/Banking-Packages-Banner-5.png\" alt=\"\" class=\"wp-image-152865\"\/><\/a><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1750681539171\"><strong class=\"schema-faq-question\">When were RRBs established in India?<\/strong> <p class=\"schema-faq-answer\">RRBs were established in <strong>1975<\/strong> based on the recommendations of the <strong>Narasimham Committee<\/strong>. The first RRB was <strong>Prathama Bank<\/strong>, set up on <strong>2 October 1975<\/strong>.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1750681540944\"><strong class=\"schema-faq-question\">What is the ownership structure of RRBs?<\/strong> <p class=\"schema-faq-answer\">The ownership of RRBs is shared as follows:<br\/>Government of India \u2013 50%<br\/>State Government \u2013 15%<br\/>Sponsor Bank \u2013 35%<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1750681542279\"><strong class=\"schema-faq-question\">Under which Act are RRBs governed?<\/strong> <p class=\"schema-faq-answer\">RRBs are governed by the Regional Rural Banks Act, 1976.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1750681543612\"><strong class=\"schema-faq-question\">Who regulates the RRBs in India?<\/strong> <p class=\"schema-faq-answer\">RRBs are regulated by:<br\/>NABARD (supervisory and developmental role)<br\/>RBI (regulatory role)<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is a Regional Rural Bank?- Why were they established?: Know all about the Regional Rural banks in India, their functions and importance.<\/p>\n","protected":false},"author":29,"featured_media":155801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[3998],"tags":[],"class_list":["post-155783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-awareness"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is a Regional Rural Bank?- Why were they 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Over the years, I've been a dedicated government job aspirant, having attempted various competitive exams conducted by the Government of India, including SSC JE, RRB JE, Banking &amp; Insurance exams, UPSC CDS, UPSC CSE and GPSC. This journey has provided me with deep insights into the examination patterns and preparation strategies. Currently, I channel this experience into my role as a passionate content writer at PracticeMock, where I strive to deliver accurate and relevant information to candidates preparing for Banking exams, guiding them effectively on their preparation journey.","url":"https:\/\/www.practicemock.com\/blog\/author\/sandhya\/"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/#faq-question-1750681539171","position":1,"url":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/#faq-question-1750681539171","name":"When were RRBs established in India?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"RRBs were established in <strong>1975<\/strong> based on the recommendations of the <strong>Narasimham Committee<\/strong>. The first RRB was <strong>Prathama Bank<\/strong>, set up on <strong>2 October 1975<\/strong>.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/#faq-question-1750681540944","position":2,"url":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/#faq-question-1750681540944","name":"What is the ownership structure of RRBs?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The ownership of RRBs is shared as follows:<br\/>Government of India \u2013 50%<br\/>State Government \u2013 15%<br\/>Sponsor Bank \u2013 35%","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/#faq-question-1750681542279","position":3,"url":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/#faq-question-1750681542279","name":"Under which Act are RRBs governed?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"RRBs are governed by the Regional Rural Banks Act, 1976.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/#faq-question-1750681543612","position":4,"url":"https:\/\/www.practicemock.com\/blog\/what-is-a-regional-rural-bank\/#faq-question-1750681543612","name":"Who regulates the RRBs in India?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"RRBs are regulated by:<br\/>NABARD (supervisory and developmental role)<br\/>RBI (regulatory role)","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"uagb_featured_image_src":{"full":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",1200,675,false],"thumbnail":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",150,84,false],"medium":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",300,169,false],"medium_large":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",640,360,false],"large":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",640,360,false],"1536x1536":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",1200,675,false],"2048x2048":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",1200,675,false],"web-stories-poster-portrait":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",640,360,false],"web-stories-publisher-logo":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",96,54,false],"web-stories-thumbnail":["https:\/\/www.practicemock.com\/blog\/wp-content\/uploads\/2025\/06\/What-is-Regional-Rural-Bank.png",150,84,false]},"uagb_author_info":{"display_name":"Sandhya","author_link":"https:\/\/www.practicemock.com\/blog\/author\/sandhya\/"},"uagb_comment_info":3,"uagb_excerpt":"What is a Regional Rural Bank?- Why were they established?: Know all about the Regional Rural banks in India, their functions and importance.","_links":{"self":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts\/155783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/comments?post=155783"}],"version-history":[{"count":0,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/posts\/155783\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/media\/155801"}],"wp:attachment":[{"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/media?parent=155783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/categories?post=155783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.practicemock.com\/blog\/wp-json\/wp\/v2\/tags?post=155783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}