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Regional Rural banks (RRB) were created to provide the sufficient institutional credit for agriculture to the rural areas of a state. The function of RRB is to provide loans to the small marginal farmers and agricultural laborers. However, the functions of an RRB are limited to a specific area which is specified by the state. Agricultural growth plays an important role in boosting the economic growth of a country, therefore, RRB are created as a helping hand to foster the agricultural growth. Some rural banks also work for the development of the rural areas. Landlords who reside in rural areas also encourage these banks to be developed in such areas. In this way rural banks also provide a way to such people to deposit their money.
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