Introduction: What is a Gramin Bank?
A Gramin Bank, officially known as a Regional Rural Bank (RRB), is a government-mandated financial institution in India specifically created to serve the rural and semi-urban population. The word "Gramin" literally means "rural" in Hindi, reflecting the core purpose of these banks — to bring formal banking and credit services to India's vast countryside, where commercial banks have traditionally had limited reach.
Unlike commercial banks that focus primarily on profit, Gramin Banks operate with a social mandate: to provide affordable credit to small farmers, agricultural labourers, artisans, and small entrepreneurs who would otherwise depend on exploitative moneylenders.
As of 2025, there are 28 Regional Rural Banks operating across 26 states and 2 Union Territories, with a combined network of over 22,000 branches serving crores of rural Indians. You can find the complete list of Gramin Banks and their IFSC codes here.
History and Formation of Gramin Banks in India
The Problem Before 1975
Before the establishment of RRBs, rural India faced a severe credit crisis. Commercial banks, focused on urban profitability, rarely opened branches in villages. The rural poor were left to borrow from local moneylenders at usurious interest rates — sometimes as high as 36% to 60% per year — trapping generations of farmers in debt cycles.
The Narasimham Committee (1975)
In 1975, the M. Narasimham Working Group on Rural Credit recommended the creation of a new class of banks to serve rural India. The committee proposed a tripartite ownership model involving the Central Government, State Government, and a Sponsor Bank.
The Regional Rural Banks Act, 1976
Acting on these recommendations, the Indira Gandhi government passed an ordinance on September 26, 1975. This was later codified into the Regional Rural Banks Act, 1976. The very first RRB, Prathama Bank, was established on October 2, 1975 in Moradabad, Uttar Pradesh, with Syndicate Bank as its sponsor.
Ownership Structure of Gramin Banks
Every Gramin Bank operates under a unique tripartite ownership model:
- 🏛️ Government of India: 50% shareholding
- 🏦 Sponsor Bank (a nationalised commercial bank): 35% shareholding
- 🗺️ State Government: 15% shareholding
Who Regulates Gramin Banks?
- Reserve Bank of India (RBI): Banking operations and licensing.
- NABARD: Refinancing, supervision, and inspection.
- Ministry of Finance: Policy direction including amalgamation decisions.
- Sponsor Bank: Managerial and technical guidance.
Key Functions of Gramin Banks
1. Agricultural Credit
The primary function is providing crop loans, Kisan Credit Cards (KCC), and term loans. At least 75% of their total lending must go to priority sector borrowers.
2. Government Scheme Disbursements
Gramin Banks are the backbone of India's Direct Benefit Transfer (DBT) system, disbursing PM-KISAN (₹6,000/year), MGNREGA wages, old age pensions, scholarships, and PM Awas Yojana subsidies.
3. Financial Inclusion
Under Pradhan Mantri Jan Dhan Yojana (PMJDY), Gramin Banks have opened millions of zero-balance accounts for the unbanked rural population.
4. Digital Banking Services
Modern Gramin Banks offer mobile banking, internet banking, UPI, RuPay Debit Cards, and NEFT/RTGS/IMPS transfers. To use these, you need your branch's Gramin Bank IFSC code.
What is an IFSC Code and Why Do Gramin Bank Customers Need It?
An IFSC (Indian Financial System Code) is an 11-character alphanumeric code that uniquely identifies every bank branch. It is mandatory for NEFT, RTGS, and IMPS transfers.
Structure: Characters 1–4 = Bank identifier | Character 5 = Always '0' | Characters 6–11 = Branch code
Example: KLGB0040101 = Kerala Gramin Bank Head Office Branch.
Find your IFSC instantly using our free IFSC finder tool.
The Great Consolidation: From 196 to 28 Banks
- 1975: 6 banks established
- 1990s: Grew to 196 RRBs
- Phase 1 (2005–06): Reduced to 133
- Phase 2 (2012–13): Reduced to 64
- Phase 3 (2019–20): Reduced to 43
- Phase 4 (May 1, 2025): "One State, One RRB" — reduced to 28
The "One State, One RRB" Policy (2025)
Effective May 1, 2025, this merged 26 RRBs across 10 states into single state-level entities for better economies of scale and reduced operational costs.
Complete List of 28 Gramin Banks in India (2025)
| # | Gramin Bank Name | State | Sponsor Bank |
|---|---|---|---|
| 1 | Andhra Pradesh Grameena Bank | Andhra Pradesh | Union Bank of India |
| 2 | Arunachal Pradesh Rural Bank | Arunachal Pradesh | State Bank of India |
| 3 | Assam Gramin Bank | Assam | Punjab National Bank |
| 4 | Bihar Gramin Bank | Bihar | Central Bank of India |
| 5 | Chhattisgarh Gramin Bank | Chhattisgarh | State Bank of India |
| 6 | Gujarat Gramin Bank | Gujarat | Bank of Baroda |
| 7 | Himachal Pradesh Gramin Bank | Himachal Pradesh | Punjab National Bank |
| 8 | Jammu and Kashmir Grameen Bank | J&K | J&K Bank |
| 9 | Jharkhand Rajya Gramin Bank | Jharkhand | State Bank of India |
| 10 | Karnataka Grameena Bank | Karnataka | State Bank of India |
| 11 | Kerala Gramin Bank | Kerala | State Bank of India |
| 12 | Madhya Pradesh Gramin Bank | Madhya Pradesh | Bank of India |
| 13 | Maharashtra Gramin Bank | Maharashtra | Bank of Maharashtra |
| 14 | Manipur Rural Bank | Manipur | Union Bank of India |
| 15 | Meghalaya Rural Bank | Meghalaya | State Bank of India |
| 16 | Mizoram Rural Bank | Mizoram | State Bank of India |
| 17 | Nagaland Rural Bank | Nagaland | State Bank of India |
| 18 | Odisha Grameen Bank | Odisha | Indian Overseas Bank |
| 19 | Puduvai Bharthiar Grama Bank | Puducherry | Indian Bank |
| 20 | Punjab Gramin Bank | Punjab | Punjab National Bank |
| 21 | Rajasthan Gramin Bank | Rajasthan | State Bank of India |
| 22 | Sikkim Gramin Bank | Sikkim | State Bank of India |
| 23 | Tamil Nadu Grama Bank | Tamil Nadu | Indian Bank |
| 24 | Telangana Grameena Bank | Telangana | State Bank of India |
| 25 | Tripura Gramin Bank | Tripura | UCO Bank |
| 26 | Uttar Pradesh Gramin Bank | Uttar Pradesh | Bank of Baroda |
| 27 | West Bengal Gramin Bank | West Bengal | Punjab National Bank |
| 28 | Uttarakhand Gramin Bank | Uttarakhand | State Bank of India |
Difference Between Gramin Bank and Commercial Bank
| Feature | Gramin Bank (RRB) | Commercial Bank |
|---|---|---|
| Primary Focus | Rural & semi-urban areas | Urban & semi-urban areas |
| Ownership | Govt (50%) + Sponsor Bank (35%) + State (15%) | Private or Government |
| Lending Priority | 75%+ must go to priority sector | 40% priority sector target |
| Regulator | RBI + NABARD | RBI only |
| Number in India (2025) | 28 | 12 Public + 21 Private |
How to Find Your Gramin Bank IFSC Code
- Passbook: Check the first page of your bank passbook.
- Cheque Book: Printed on every cheque leaf, top-left corner.
- Bank's Website: Use the branch locator tool.
- Online IFSC Finder: Use our free Gramin Bank IFSC code finder — search by Bank → State → District → Branch in seconds.
Frequently Asked Questions
Are Gramin Bank deposits safe?
Yes. All deposits are insured by DICGC (RBI subsidiary) up to ₹5 lakh per depositor — same as any scheduled commercial bank.
Can I use UPI with a Gramin Bank account?
Yes. Most Gramin Banks now support UPI. You can send and receive money using a UPI handle linked to your Gramin Bank account.
What is the Kisan Credit Card (KCC)?
A revolving credit facility for farmers at lower interest rates, with flexible repayment linked to the harvest season. Available at all Gramin Banks.
My bank was merged — what happens to my account?
Your account continues seamlessly. However, your IFSC code may change. Always verify your current IFSC using our IFSC finder before making a transfer.
Conclusion
Gramin Banks are the lifeblood of rural India's financial ecosystem. From 6 banks in 1975 to a network of 28 strong institutions with 22,000+ branches, they have brought millions of rural Indians into the formal banking system. Whether you're a farmer, a rural entrepreneur, or someone sending money to family in a village — your Gramin Bank is there for you.
Use our free tool to find your Gramin Bank IFSC code, browse all Gramin Banks by state, or read more banking guides and articles.