Lok Sabha Question No. 2164 (UNSTARRED), answered on 2016-05-06
Subject: Regional Rural Banks
Ministry: FINANCE
Asked by: RAMESH BIDHURI, VIRENDRA  KUMAR

## Government of India Ministry of Finance Department of Financial Services

LokSabha Unstarred Question No. †2164

To be answered on the May 06, 2016/Vaisakha 16, 1938(Saka)

## Regional Rural Banks

†2164 : Shri RAMESH BIDHURI

Dr.VIRENDRA KUMAR

Will the Minister of FINANCE be pleased to state:

(a) the main objectives for setting up of Regional Rural Banks (RRBs) in the country and the guidelines which regulate the credit and other facilities being provided by these RRBs along with the number of RRBs presently functioning in the country, State-wise;

(b) the details and the number out of them which are suffering with poor financial condition/closed down during the last three financial years, State-wise;

(c) whether the Government has any proposal to provide any assistance for strengthening the RRBs, if so, the details thereof;

(d) whether the Government has noticed any irregularities in functioning of RRBs, if so, the details thereof;

(e) the steps taken by the Government to improve the performance of RRBs in this regard?

## Answer Minister of State in the Ministry of Finance (JAYANTSINHA)

(a) to (e)Regional Rural Banks (RRBs) were set up under the Regional Rural Banks Act, 1976 with a view to develop the rural economy by providing credit for development of agriculture trade and commerce, industry and other productive activities in rural area particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs.

The State-wise details of RRBs, with their sponsor banks are furnished in Annex-I .

There are no cases during the last three financial years of RRBs which were closed down due to poor financial condition. Based on the audited financial position for the year 2014-15, the details of RRBs having accumulated losses for the last three years are given in Annex-II.

The Government had taken steps to infuse capital in the RRBs who are not in a position to maintain CRAR of 9% as stipulated by RBI. A total capital of Rs.2,206.02 crore has been infused in39 RRBs as on 31 st March 2016, out of which GoIhas released a sum ofRs.1,101.70 crore. In BE 2016-17, a sum of Rs.140 crore has been allocated for recapitalisation of RRBs.

RRBs are regulated by the Reserve Bank of India and supervised by NABARD. In case of any irregularity noticed, the same is advised to the concerned RRB for

Government had initiated a process of structural consolidation of RRBs, in consultation with NABARD, State Government concerned and the sponsor banks. State level amalgamation process of RRBs was initiated in the first phase in 2005 to improve the operational viability, taking advantage of the economies of scale and also with a view to provide better customer service by having improved infrastructure, computerisation, experienced work force, common publicity and marketing opportunities. The second phase of further amalgamation was initiated across the Sponsor banks within a State during 2012. As a result, the total number of RRBs has rectification/ corrective action. come down to 56 as on date.

To strengthen the human resource of RRBs, Common Recruitment Examination was conducted during the year 2015-16. Reserve Bank of India has permitted Internet banking to RRBs for providing better customer service.

The performance of the RRBs, in the recent past, shows that they have responded well to the reform measures initiated by the Government.

## \_\_\_\_\_\_\_\_\_\_\_

|   Sr. No. | Name of Regional Rural Bank        | State             | Sponsor Bank          |
|-----------|------------------------------------|-------------------|-----------------------|
|         1 | Andhra Pradesh GrameenaVikas Bank  | Andhra Pradesh    | State Bank of India   |
|         2 | Andhra PragathiGrameena Bank       | Andhra Pradesh    | Syndicate Bank        |
|         3 | Chaitanya Godavari Grameena Bank   | Andhra Pradesh    | Andhra Bank           |
|         4 | SaptagiriGrameena Bank             | Andhra Pradesh    | Indian Bank           |
|         5 | Arunachal Pradesh Rural Bank       | Arunachal Pradesh | State Bank of India   |
|         6 | Assam GraminVikash Bank            | Assam             | United Bank of India  |
|         7 | LangpiDehangi Rural Bank           | Assam             | State Bank of India   |
|         8 | Bihar Gramin Bank                  | Bihar             | UCO Bank              |
|         9 | Madhya Bihar Gramin Bank           | Bihar             | Punjab National Bank  |
|        10 | Uttar Bihar Gramin Bank            | Bihar             | Central Bank of India |
|        11 | Chhattisgarh RajyaGramin Bank      | Chhattisgarh      | State Bank of India   |
|        12 | Baroda Gujarat Gramin Bank         | Gujarat           | Bank of Baroda        |
|        13 | Dena Gujarat Gramin Bank           | Gujarat           | Dena Bank             |
|        14 | SaurashtraGramin Bank              | Gujarat           | State Bank of India   |
|        15 | Sarva Haryana Gramin Bank          | Haryana           | Punjab National Bank  |
|        16 | Himachal Pradesh Gramin Bank       | Himachal Pradesh  | Punjab National Bank  |
|        17 | EllaquaiDehati Bank                | Jammu & Kashmir   | State Bank of India   |
|        18 | J&KGrameen Bank                    | Jammu & Kashmir   | J&K Bank Ltd.         |
|        19 | Jharkhand Gramin Bank              | Jharkhand         | Bank of India         |
|        20 | VananchalGramin Bank               | Jharkhand         | State Bank of India   |
|        21 | Karnataka VikasGrameena Bank       | Karnataka         | Syndicate Bank        |
|        22 | KaveriGrameena Bank                | Karnataka         | State Bank of Mysore  |
|        23 | Pragathi Krishna Gramin Bank       | Karnataka         | Canara Bank           |
|        24 | Kerala Gramin Bank                 | Kerala            | Canara Bank           |
|        25 | Central Madhya Pradesh Gramin Bank | Madhya Pradesh    | Central Bank of India |
|        26 | MadhyanchalGramin Bank             | Madhya Pradesh    | State Bank of India   |
|        27 | Narmada JhabuaGramin Bank          | Madhya Pradesh    | Bank of India         |
|        28 | Maharashtra Gramin Bank            | Maharashtra       | Bank of Maharashtra   |
|        29 | VidharbhaKonkanGramin Bank         | Maharashtra       | Bank of India         |
|        30 | Manipur Rural Bank                 | Manipur           | United Bank of India  |
|        31 | Meghalaya Rural Bank               | Meghalaya         | State Bank of India   |
|        32 | Mizoram Rural Bank                 | Mizoram           | State Bank of India   |
|        33 | Nagaland Rural Bank                | Nagaland          | State Bank of India   |
|        34 | OdishaGramya Bank                  | Odisha            | Indian Overseas Bank  |
|        35 | UtkalGrameen Bank                  | Odisha            | State Bank of India   |
|        36 | PuduvaiBharthiarGrama Bank         | Puducherry        | Indian Bank           |
|        37 | MalwaGramin Bank                   | Punjab            | State Bank of Patiala |
|        38 | Punjab Gramin Bank                 | Punjab            | Punjab National Bank  |
|        39 | Sutlej Gramin Bank                 | Punjab            | Punjab and Sind Bank  |
|        40 | Baroda Rajasthan KshetriyaGramin   | Rajasthan         | Bank of Baroda        |

|    | Bank                            |               |                                  |
|----|---------------------------------|---------------|----------------------------------|
| 41 | Rajasthan MarudharaGramin Bank  | Rajasthan     | State Bank of Bikaner and Jaipur |
| 42 | PallavanGrama Bank              | Tamil Nadu    | Indian Bank                      |
| 43 | PandyanGrama Bank               | Tamil Nadu    | Indian Overseas Bank             |
| 44 | TelanganaGrameena Bank          | Telangana     | State Bank of Hyderabad          |
| 45 | Tripura Gramin Bank             | Tripura       | United Bank of India             |
| 46 | Allahabad UP Gramin Bank        | Uttar Pradesh | Allahabad Bank                   |
| 47 | Baroda UP Gramin Bank           | Uttar Pradesh | Bank of Baroda                   |
| 48 | Gramin Bank of Aryavart         | Uttar Pradesh | Bank of India                    |
| 49 | KashiGomtiSamyutGramin Bank     | Uttar Pradesh | Union Bank of India              |
| 50 | Prathama Bank                   | Uttar Pradesh | Syndicate Bank                   |
| 51 | Purvanchal Bank                 | Uttar Pradesh | State Bank of India              |
| 52 | Sarva UP Gramin Bank            | Uttar Pradesh | Punjab National Bank             |
| 53 | UttarakhandGramin Bank          | Uttarakhand   | State Bank of India              |
| 54 | BangiyaGraminVikash Bank        | West Bengal   | United Bank of India             |
| 55 | PaschimBangaGramin Bank         | West Bengal   | UCO Bank                         |
| 56 | Uttar BangaKshetriyaGramin Bank | West Bengal   | Central Bank of India            |

LokSabhaUnstarred Question No. 2164 for 06.05.2016 Annex - II (Rs. In Lakh)

| S.No.   | Name of RRB          | State       | Sponsor Bank   | Accumulated Loss   | Accumulated Loss   | Accumulated Loss   |
|---------|----------------------|-------------|----------------|--------------------|--------------------|--------------------|
|         |                      |             |                | 31-Mar-13          | 31-Mar- 14         | 31-Mar-15          |
| 1       | 2                    | 3           | 4              | 5                  | 6                  | 7                  |
| 1       | OdishaGramya Bank    | Odisha      | IOB            | 33962.69           | 32520.45           | 42284.88           |
| 2       | BangiyaGVB           | West Bengal | United Bank    | 26381.93           | 23154.16           | 19721.40           |
| 3       | EllaquaiDehati Bank  | J & K       | SBI            | 13762.97           | 13386.89           | 14249.64           |
| 4       | UtkalGrameen Bank    | Odisha      | SBI            | 10945.89           | 6950.37            | 12810.56           |
| 5       | PaschimBanga GB      | West Bengal | UCO Bank       | 11694.31           | 9681.75            | 8932.44            |
| 6       | Arunachal Pradesh RB | Arunachal   | SBI            | 4257.17            | 4208.69            | 4190.68            |
| 7       | Manipur Rural Bank   | Manipur     | United Bank    | 4089.25            | 4081.59            | 4073.76            |
| 8       | Nagaland Rural Bank  | Nagaland    | SBI            | 867.26             | 862.06             | 952.08             |
| 9       | Jammu & Kashmir GB   | J & K       | J & K Bank     | 1228.33            | 0.00               | 0.00               |
| 10      | Vananchal GB         | Jharkhand   | SBI            | 1482.14            | 0.00               | 0.00               |
| 11      | MewarAnchalik GB *   | Rajasthan   | ICICIBank      | 391.81             | 0.00               | na                 |
|         | ALL INDIA TOTAL      |             |                | 109063.75          | 94845.96           | 107215.44          |