The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs) assuming that they would be much better suited than the commercial banks or co-operative banks in meeting the needs of rural areas. Accepting the recommendations of the Narasimham committee, the Govt. of India passed the Regional Rural Banks Act, 1976. The main objective of RRBs is to provide credit and other facilities particularly to the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs and develop agriculture, trade, commerce, industry and other productive activities bridging the credit gap in rural areas.
The establishment of the Regional Rural Banks (RRBs) was initiated in 1975 under the provisions of the ordinance promulgated on 26.9.1975 and thereafter Section 3(1) of the RRB Act, 1976. The issued capital of RRBs is shared by Central Government, sponsor bank and the State Government in the proportion of 50%, 35% and 15% respectively.
Bihar Gramin Bank, sponsored by UCO Bank, came into existence vide Govt. of India notification dated 15th October,2012 by amalgamating 2 RRBs namely Bihar Kshetriya Gramin Bank and Samastipur Kshetriya Gramin Bank in exercise of the powers conferred by sub-section (1) of section 23A of the Regional Rural Banks act, 1976 (21 of 1976).
The Bank has penetrated every corner of the 9 districts of Bihar and extended a helping hand in the growth process of the area. The Primary objective of the Bank is to finance farm & non-farm sectors and other employment generation programs, delivering the best possible customer service and also keeping in mind to turn all the branches into profit making business centers.