Finance Ministry Merges 26 RRBs Under ‘One State, One RRB’ Plan
Department of Financial Services: DFS has notified the amalgamation of 26 Regional Rural Banks (RRBs) on the principles of “One State, One RRB”. This is the fourth phase of amalgamation of RRBs.
Considering the improvement in efficiency of the RRBs due to amalgamations in the past, the Ministry of Finance had rolled out an amalgamation plan in November last year. After consultation with stakeholders, amalgamation of 26 RRBs in 10 states and one UT has been carried out with a primary focus on improvement in scale efficiency and cost rationalisation.
At present, 43 RRBs are functioning in 26 states and two UTs. Post-amalgamation, there will be 28 RRBs in 26 states and 2 UTs with more than 22 thousand branches covering 700 districts. Their predominant area of operation is in rural areas, with around 92 percent of branches in rural and semi-urban areas.
