Indian History

Regional Rural Banks

Regional Rural Banks were established on October 2, 1975.
These were set up on the recommendations of The M. Narasimham Working Group
RRBs are local level banking organizations operating in different States of India.
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.
Regional Rural Banks (RRBs) were established in 1975 under the provisions of the Ordinance promulgated on the 26th September 1975 and followed by Regional Rural Banks Act, 1976 with a view to develop the rural economy and to create a supplementary channel to the 'Cooperative Credit Structure' with a view to enlarge institutional credit for the rural and agriculture sector.
Prathama Bank with authorised capital of Rs. 5 crore is the first RRB.
Bhandar committee and K.Basu Committees were appointed by the Government for restructureing the Regional Rural Development Banks.