The first Regional Rural Bank in India, known as Prathama Bank, was set up on 2nd October 1975 in the state of Uttar Pradesh.
Its headquarters were located in Moradabad. The bank was established with the support of Syndicate Bank, which acted as its sponsor.
The ownership structure of RRBs is divided among three main entities:
The Central Government holds 50% of the shares.
The State Government has a 15% share.
The remaining 35% is held by the sponsoring banks.
This distribution of ownership ensures that the banks receive both national and local support, while also benefiting from the experience and resources of the sponsoring banks.
The primary aim behind setting up RRBs was to provide financial services and support to rural areas, particularly for small farmers, artisans, and others engaged in rural industries.
