The Regional Rural Banks (RRBs) were established under the provision of RRBs Act, 1976, Act No. 21 of 1976 [9 February 1976]. with an objective to create an alternative channel to the cooperative credit structure so as to facilitate an expanded bandwidth of institutional credit for agriculture and rural sector. It started with 5 RRBs in the year 1975, first RRB was setup on 2nd October, 1975 under the provisions of the Ordinance promulgated on 26th September, 1975, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto. RRBs carry the basic mandate of ensuring rural development and foster financial inclusion.
RRBs in the last 5 decades have transformed rural banking in providing easy access to financial services.
Initially there were 36 RRBs functional in Uttar Pradesh since 1975. Out of which 1 RRB Kshetriya Kisan Gramin Bank was sponsored by Uttar Pradesh state Co-operative Bank Ltd.
Prathama Bank, with head office in Moradabad, Uttar Pradesh was the first RRB established on October 2, 1975. It was sponsored by Syndicate Bank and had an authorized capital of Rs. 5 crore.
This is the list of amalgamations held in Uttar Pradesh at various points of time
In the financial year 2005-06, 23 RRBs amalgamated to form 7 RRBs
Union Bank of India had sponsored four RRBs in India out of which three were in U.P namely, Kashi Gramin Bank, Gomti Gramin Bank and Samyut Kshetriya Gramin Bank. Samyut Khetriya Gramin Bank established on 6th Jan 1976, with its Head Office at AZAMGARH. It covered four districts It had 168 branches.