Regional Rural banks (RRBs) in India were established by Government of India, under provisions of RRBs Act 1976, enacted by the Indian Parliament.
With a view to develop the rural economy by catering the basic banking needs for the purpose of development of Agriculture, Trade, Commerce, Industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, Agricultural Labourers, Artisans and small entrepreneurs and for matters connected therewith and individuals thereto.
RRBs have now become an Integral part of the Indian banking System. Like other public sector Banks RRBs are established by Govt. of. India and are scheduled & notified by Reserve Bank of India.
RRBs are jointly owned by Government of India(GOI), Sponsor Bank and the concerned State Government and with share proportion 50%,35% & 15% respectively.
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, expanding area of operation with combined network, Improved technology with innovative IT, improvement of combined workforce, strategic marketing efforts. etc.
Karnataka Gramin Bank with its Head office at Ballari under the sponsorship of Canara Bank came to existence on 01.04.2019 as per the gazette Notification of Government of India No.852 dated 22.02.2019 with amalgamation of 2RRBs i.ePragathi Krishna Gramin Bank (Sponsored by Canara Bank with Head Office at Ballari) &KaveriGrameena Bank (Sponsored by State Bank of India with Head Office at Mysuru).