Origin of Regional Rural Banks (RRB's)
Rural credit policy in India has had at its core the twin goals of bringing an increasing number of people within the formal financial system and using credit as an instrument of poverty alleviation. Several measures have been taken by Government of India and Reserve Bank of India, from time to time to achieve these goals.
Even after commercial banks were brought into the field of Rural banking in the post nationalization scenario, a large segment of the rural population remained out side the fold of banking services. Therefore, the Govt. of India took a decision to establish a new set up regionally oriented rural banks which would combine the local feel, familiarity characteristic of co-operatives and professionalism and resource base of commercial banks. Following the recommendations of the committee, Regional Rural banks (RRBs) were set up first on 2nd October, 1975.
As enshrined in the Preamble to the RRBs Act, 1976, The RRBs were established with a view to developing the rural economy by providing, 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, etc.
Origin of Pragathi Krishna Gramin Bank
The Government of India vide Notification dated 23.08.2013 under Ref. No F No¬†1/5/2011-RRB (Karnataka) has amalgamated 2 RRBs viz, Pragathi Gramin Bank sponsored by Canara Bank and Krishna Grameena Bank sponsored by State Bank of India into new RRB called ‚ÄúPragathi Krishna Gramin Bank‚ÄĚ sponsored by Canara Bank . The new RRB has come into effect from 23.08.2013.