Origin of RRBs and the Bank
RRBs were established by Government of India, under the provisions of RRBs Act 1976, enacted by the Parliament.
The objective of setting up of these Special Category of Banks is to cater to the basic banking needs of rural people in particular, to contribute for the development of rural economy and prosperity of the region and employment generation. RRBs have now become an integral part of the Indian Banking System. RRBs like Public Sector Banks are established by Govt. of India and are the Scheduled Banks, notified by Reserve Bank of India.
Govt. of India, with a view to improve the operational viability and efficiency of RRBs, initiated the process of structural consolidation by amalgamating RRBs. The amalgamated RRBs were expected to provide better customer service with improved infrastructure, computerization, pooling of experienced workforce, common publicity and marketing efforts etc. The amalgamation intended to reap benefits of large are of operation, enhanced credit exposure limits and undertake diverse banking activities.
Pragathi Krishna Gramin Bank with Head Office at Bellary came into existence on 23rd August 2013 with the amalgamation of 2 RRBs viz, erstwhile Pragathi Gramin Bank (Sponsored by Canara Bank with Head Office at Bellary) and erstwhile Krishna Grameena Bank (Sponsored by State Bank of India with Head Office at Gulbarga. The Bank was formed as per gazette Notification of Government of India No. F1/5/2011- RRB (Karnataka) dated 23.08.2013