Explanation:

 Regional Rural Banks came into existence in 1975 with the formation of a Prathama Grameen Bank. These Banks were established under the Regional Rural Banks Act 1976. This act allowed the government to set up banks from time to time wherever it considered necessary. The RRBs were owned by three entities with their respective shares as follows: Central Government → 50% State government → 15% Sponsor bank → 35% Regional Rural Banks were conceived as low cost institutions having a rural ethos, local feel and pro poor focus. Every bank was to be sponsored by a “Public Sector Bank”, however, they were planned as the self sustaining credit institution which were able to refinance their internal resources in themselves.