• Established: 1975 under an ordinance and the Regional Rural Banks Act of 1976.
• Regulated By: The Reserve Bank of India (RBI)
• Supervised By: National Bank for Agriculture and Rural Development (NABARD)
• These are financial institutions designed to provide sufficient credit for agriculture and other rural sectors.
• They combine cooperative traits, understanding local rural issues, with the professionalism and resource mobilization capabilities of commercial banks.

Functions of RRBs

• To ensure the safety of customer savings.
• To generate credit and enhance the money supply.
• To foster public trust in the financial system.
• To mobilize public savings.
• To expand its network to reach all segments of society.
• To offer financial services to all customers, regardless of their income level.
• To promote social equity by delivering financial services to every layer of society.