Important points you should know about Regional Rural Banks (RRBs) for IBPS RRB PO and Clerk Exams

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Friends, in this post we shall discuss about the basic points you should know about Regional Rural Banks (RRBs).  CWE for RRB (Regional Rural Banks ) PO and Clerical Exams. These points will be helpful for you in your upcoming IBPS PO / Clerks and IBPS RRB PO / Clerks Exams. Previously NABARD takes responsibilities for Recruiting the Staff in RRB’s. And used to conduct the Individual Exams and Interviews for the Recruitment. Now this was changed and IBPS taken the rights to conduct Common written exam and Interviews for Regional Rural Banks. All The Best :)

Regional Rural Banks (RRBs) - The History 

Rural banking in India started since the establishment of banking sector in India.  Regional Rural Banks were set up after nationalizations of banks in 1969 when emphasis shifted to providing more credit to weaker sections. Regional Rural Banks were established under the provisions of an Ordinance promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors.  Rural Banks in those days mainly focused upon the Agro Sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country.

Here is the Complete list of 82 Regional Rural Banks(RRB) in India by Sate wise which are participating in IBPS RRB Exam :

Andhra Pradesh

•  Andhra Pradesh Grameena Vikas Bank (APGVB)
• Andhra Pragathi Grameena Bank
• Deccan Grameena Bank
• Chaitanya Godavari Grameena Bank
• Saptagiri Grameena Bank

Arunachal Pradesh

•  Arunachal Pradesh Rural Bank

Assam

•  Assam Gramin Vikash Bank
•  Langpi Dehangi Rural Bank

Bihar

•  Madhya Bihar Gramin Bank
•  Bihar Kshetriya Gramin Bank
•  Uttar Bihar Kshetriya Gramin Bank
• Kosi Kshetriya Gramin Bank
• Samastipur Kshetriya Gramin Bank

Chhattisgarh

• Chhattisgarh Gramin Bank.
• Surguja Kshetriya Gramin Bank
• Durg-Rajnandgaon Gramin Bank

Gujarat

• Dena Gujarat Gramin Bank
• Baroda Gujarat Gramin Bank
• Saurashtra Gramin Bank

Haryana

• Harayana Gramin Bank
• Gurgaon Gramin Bank

Himachal Pradesh

• Himachal Gramin Bank
• Parvatiya Gramin Bank

Jammu & Kashmir

• Jammu Gramin Bank (Merger of Jammu Rural and Kamraz Rural Banks)
• Ellaquai Dehati Bank

Jharkhand

• Jharkhand Gramin Bank
• Vananchal Gramin Bank

Karnataka

• Karnataka Vikas Grameena Bank
• Pragathi Gramin Bank
• Cauvery Kalpatharu Grameena Bank
• Krishna Grameena Bank
• Chimagalur-Kodagu Grameena Bank
• Visveshvaraya Gramin Bank

Kerala

• South Malabar Gramin Bank
• North Malabar Gramin Bank

Madhya Pradesh

• Narmada Malwa Gramin Bank
• Satpura Kshetriya Gramin Bank
• Madhya Bharath Gramin Bank
• Chambal-Gwalior Kshetriya Gramin Bank
• Rewa-Sidhi Gramin Bank
• Sharda Gramin Bank
• Ratlam-Mandsaur Kshetriya Gramin Bank
• Vidisha Bhopal Kshetriya Gramin Bank
• ahakaushal Kshetriya Gramin Bank
• Jhabua Dhar Kshetriya Gramin Bank

Maharashtra

• Marathwada Gramin Bank
• Aurangabad-Jalna Gramin Bank
• Wainganga Kshetriya Gramin Bank
• Vidharbha Kshetriya Gramin Bank
• Solapur Gramin Bank
• Thane Gramin Bank
• Ratnagiri-Sindhudurg Gramin Bank

Manipur

• Manipur Rural Bank

Meghalaya

• Ka Bank Nogkyndong Ri Khasi-Jaintia

Mizoram    

• Mizoram Rural Bank

Nagaland

• Nagaland Rural Bank

Orissa

• Kalinga Gramya Bank
• Utkal Gramya Bank
• Baitarani Gramya Bank
• Neelachal Gramya Bank
• Rushikulya Gramya Bank

Punjab

• Punjab Gramin Bank
• Faridkot-Bhatinda Kshetriya Gramin Bank
•  Malwa Gramin Bank

Rajasthan

• Baroda Rajasthan Gramin Bank
• Marwar Ganganagar Bikaner Gramin Bank
• Rajasthan Gramin Bank
• Jaipur Thar Gramin Bank
•  Hodoti Kshetriya Gramin Bank
•  Mewar Anchalik Gramin Bank

Tamil Nadu

• Pandyan Grama Bank
• Pallavan Grama Bank

Tripura

• Tripura Gramin Bank

Uttar Pradesh

• Purvanchal Gramin Bank
•  Kashi Gomti Samyut Gramin Bank
•  Uttar Pradesh Gramin Bank
• Shreyas Gramin Bank
•  Lucknow Kshetriya Gramin Bank
•  Ballia Kshetriya Gramin Bank
• Aryavart Gramin Bank
• Kisan Gramin Bank
• Kshetriya Kisan Gramin Bank
• Etawah Kshetriya Gramin Bank
• Rani Laxmi Bai Kshetriya Gramin Bank
• Baroda Western Uttar Pradesh Gramin Bank
• Devipatan Kshetriya Gramin Bank
•  Prathama Bank
• Baroda Eastern Uttar Pradesh Gramin Bank

Uttaranchal 

• Uttaranchal Gramin Bank
• Nainital Almora Kshetriya Gramin Bank

West Bengal

• Bangiya Gramin Vikash Bank
• Paschim Banga Gramin Bank
• Uttar Banga Kshetriya Gramin Bank

Objectives of Regional Rural Banks :

The importance of the rural banking in the economic development of a country cannot be overlooked. As Gandhiji said “Real India lies in Villages,” and village economy is the backbone of Indian economy. Without the upliftment of the rural economy as well as the rural people of our country, the objectives of economic planning cannot be achieved. In fact, the real growth of Indian economy lied in the freeing of rural masses from acute poverty, unemployment, and socio-economic backwardness.

Regional Rural Banks (RRBs) are oriented towards meeting the needs of the weaker sections of the rural population consisting of :

• Small and marginal farmers,
• Agricultural labourers,
• Artisans,
• Small entrepreneurs,
• Mobalise deposits from rural households

RRBs are expected to make credit available to rural households besides inspiring carefulness. Put it simple to ensure sufficient institutional credit for agriculture and other rural sectors.

The Credit Delivery System :

• Grant of credit at cheap or concessional rates
• Lending to individuals belonging to weaker sections without checking the viability of the activity proposed to be undertaken.

The Operational Area of RRB "

The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State.

Ownership of RRBs :

RRBs are jointly owned by Government of India (GOI), the concerned State Government and Sponsor Banks (27 scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is shared by the owners in the proportion of 60%, 20% and 20% respectively.

Reform Process - RRBs

In order to provide access to low-cost banking facilities to the poor, the Narasimham Working Group (1975) proposed the establishment of a new set of banks, as institutions which "combine the local feel and the familiarity with rural problems which the cooperatives possess and the degree of business organization, ability to mobilize deposits, access to central money markets and modernized outlook which the commercial banks have".

RRBs started their development process on 2nd October 1975 with the formation of a single bank (Prathama Grameen Bank). As on 31 March 2006, there were 133 RRBs (post-merger) covering 525 districts with a network of 14,494 branches.

RBI Assistance

With a view to facilitate RRBs operations, the RBI gave RRBs direct access to refinance assistance at a concessional rate of three per cent below the bank rate.

Allowed to maintain a lower level of SLR than commercial banks.

Allowed to pay half per cent more interest on all deposits except those of three years and above.

Sponsor banks IDBI, NABARD, SIDBI, and other FIs are statutorily required under the RRBs Act to provide managerial and financial assistance to RRBs.

Evaluation of RRBs

The Committee constituted by the RBI in June 1977 to valuate the performance of RRBs concluded that with some modifications in their organisation and structure. The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development which inter alia examined the role of RRBs in the rural development work, suggested the following : 

• Preference for opening bank branches than commercial banks
• The eligible business of commercial banks’ rural branches may be transferred to RRBs.
• The losses in initial years of RRBs may be met by shareholders and equity capital should also be raised.
• The various facilities provided by sponsor banks should continue for 10 yrs in each case
• Concessionary refinance by RBI should be continued
• The control, regulation, and promotional responsibilities should be transferred from the GOI to RBI or NABARD.

Regulatory Control

RRBs are allowed up to December 31, 2000 to maintain cash reserves at 3 per cent of their demand and time liabilities. A number of measures were taken since 1995 not only to make RRBs viable but also to enable them to function effectively.

Apart from recapitalisation and infusion of equity, the measures include : Deregulation of interest rates on advance and deposits of above one year maturity; rationalization of branches; and relaxation of norms relating to investments by RRBs.

In 1998-99 NABARD introduced several policy measures for improving overall performance. 

They are :

• Quarterly / half yearly review of RRBs especially weak ones by the sponsor banks
• Merger of RRBs coming under a sponsor bank and operating in contiguous areas
• Off-site surveillance
• Framing of Appointment and Promotion rules (1998) for the staff of RRBs
• Introduction of Kissan Credit Cards for provision of credit to farmers. 

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