Govt Merges 26 RRBs Under ‘One State, One RRB’ Plan to Boost Efficiency

The Department of Financial Services (DFS) has notified the amalgamation of 26 Regional Rural Banks (RRBs) under the “One State, One RRB” principle. This is the fourth phase of the RRB consolidation process. The Ministry of Finance rolled out the amalgamation plan in November last year, building on improvements in efficiency from previous phases.

Following consultations with stakeholders, 26 RRBs



across 10 states and one Union Territory have been merged, focusing on enhancing scale, efficiency, and cost rationalisation. Currently, 43 RRBs operate across 26 states and two Union Territories. Post-amalgamation, there will be 28 RRBs covering 700 districts with more than 22,000 branches. Around 92 percent of these branches are located in rural and semi-urban areas.