In this study, the focus is to cover the gradual growth and development of Regional Rural Banks in granting rural economy along with fulfilling credit needs of the backward sections of society. The study is divided into two parts. First part of the study is involved in revealing the inception of Regional Rural Banks; laws related to it and various amendments and events that took place from time to time. On the other hand, Second part of the paper deals with various study and analysing the one and only Regional Rural Bank of Assam i.e. Assam Gramin Vikash Bank in order to understand the background behind the upsurge of financial rural economy in Assam as an important part of the paper.