law: The Regional Rural Banks Act, 1976
  3. Establishment and
  
  incorporation of Regional Rural Banks
  1.  The
  
  Central Government may, if requested so to do by a Sponsor Bank, by
  
  notification in the Official Gazette, establish in a State or Union territory,
  
  one or more Regional Rural Banks with such name as may be specified in the
  
  notification and may, by the said or subsequent notification, specify the local
  
  limits within which each Regional Rural Bank shall operate.
  2.  Every
  
  Regional Rural Bank shall be a body corporate with perpetual succession and a common
  
  seal with power, subject to the provisions of this Act, to acquire, hold and
  
  dispose of property and to contract and may sue and be sued in its name.
  3.  It
  
  shall be the duty of the Sponsor Bank to aid and assist the Regional Rural
  
  Bank, sponsored by it, by subscribing to the share capital of such Regional
  
  Rural Bank, recruitment and training of personnel during the first five years
  
  of the functioning of the Regional Rural Bank and providing such managerial and
  
  financial assistance as may be mutually agreed upon between the Sponsor Bank
  
  and the Regional Rural Bank.