Facilitation of rural credit is an integral part of the progress of a developing country in India. After independence policymakers wanted to raise formal institutional credit keeping in a view to cut back the role of non-institutional credit sources like money lenders, traders, landlords, commission agents, credit form relatives etc. In order to meet the credit needs of the rural people in India Regional Rural Bank (RRB) is initiated in early 70’s. Small man’s bank with a local feel and supported by both Central and State Government, Reserve Bank of India and Sponsored bank is the feature of RRBs. The objective of the study is to assess the performance of RRBs in rural India and to do so the challenges put before RRBs. The amount of success is evaluated to initiate RRBs by applying several parameters like rural credit targets and achievements; Direct and Indirect credit in Agricultural and allied activities, Credit deposit ratio is applied to measure the role of RRB as principal facilitator of rural credit in India. On the basis of secondary data the study made an attempt to evaluate the aforesaid issue.