Govt Merges 26 RRBs Under ‘One State One RRB’ Plan
ECONOMY & POLICY

Govt Merges 26 RRBs Under ‘One State One RRB’ Plan

The Department of Financial Services (DFS) has announced the merger of 26 Regional Rural Banks (RRBs) across 10 states and one Union Territory, following the “One State One RRB” principle. This marks the fourth phase of RRB amalgamation in India.

The move comes after earlier consolidations showed improved efficiency in operations. In November 2024, the Ministry of Finance proposed the current merger plan and held consultations with key stakeholders before moving forward. The latest phase focuses on enhancing scale efficiency and optimizing costs across the rural banking network.

Before the merger, 43 RRBs operated across 26 states and 2 Union Territories. With the new changes, the number will come down to 28, while the overall network will still serve over 22,000 branches across 700 districts—around 92 per cent of which are in rural or semi-urban regions.

The merger is part of a long-term consolidation effort. In Phase 1 (2006–2010), the number of RRBs was brought down from 196 to 82. Phase 2 (2013–2015) saw further reduction to 56, and Phase 3 (2019–2021) brought the total to 43. This latest round continues the government’s focus on strengthening rural banking through strategic consolidation.

The Department of Financial Services (DFS) has announced the merger of 26 Regional Rural Banks (RRBs) across 10 states and one Union Territory, following the “One State One RRB” principle. This marks the fourth phase of RRB amalgamation in India. The move comes after earlier consolidations showed improved efficiency in operations. In November 2024, the Ministry of Finance proposed the current merger plan and held consultations with key stakeholders before moving forward. The latest phase focuses on enhancing scale efficiency and optimizing costs across the rural banking network. Before the merger, 43 RRBs operated across 26 states and 2 Union Territories. With the new changes, the number will come down to 28, while the overall network will still serve over 22,000 branches across 700 districts—around 92 per cent of which are in rural or semi-urban regions. The merger is part of a long-term consolidation effort. In Phase 1 (2006–2010), the number of RRBs was brought down from 196 to 82. Phase 2 (2013–2015) saw further reduction to 56, and Phase 3 (2019–2021) brought the total to 43. This latest round continues the government’s focus on strengthening rural banking through strategic consolidation.

Next Story
Infrastructure Transport

Adani wins Kedarnath ropeway project to cut trek to 36 minutes

Adani Enterprises Ltd (AEL) has secured the contract to build a 12.9-km ropeway connecting Sonprayag with Kedarnath, a project expected to transform the pilgrimage experience. Awarded by National Highways Logistics Management Ltd (NHLML), the project will be executed under the National Ropeways Development Programme – Parvatmala Pariyojana.Currently, pilgrims undertake a gruelling nine-hour trek to Kedarnath. The ropeway will reduce this journey to just 36 minutes and can transport 1,800 passengers per hour in each direction, serving the nearly 20 lakh devotees who visit annually.The Rs 25,0..

Next Story
Infrastructure Transport

Gurugram Rapid Metro to shift from DMRC to GMRL control

The Haryana Mass Rapid Transport Corporation Limited (HMRTC) has begun the process of transferring Gurugram’s Rapid Metro operations from the Delhi Metro Rail Corporation (DMRC) to Gurugram Metro Rail Limited (GMRL). The decision was taken at HMRTC’s 62nd Board meeting, chaired by chief secretary Anurag Rastogi.Committees have been formed to oversee the transition, covering technical, legal, and operational aspects, with definitive timelines being prepared. Until the transfer is complete, the system will be managed jointly by DMRC and GMRL.The Rapid Metro has shown notable performance impr..

Next Story
Infrastructure Transport

Chandigarh Metro cost climbs to Rs 25,000 crore amid delays

The long-awaited Chandigarh Tricity Metro project has seen its estimated cost balloon to nearly Rs 25,000 crore, following delays in approvals by the Union Territory administration. The cost, which stood at Rs 23,263 crore in February 2025, has risen by Rs 1,737 crore in just seven months, according to officials.The matter was raised during the transport standing committee meeting of the Administrator’s Advisory Council, chaired by AAP state president Vijay Pal. A presentation by Rail India Technical and Economic Service (RITES) strongly recommended that the Metro is the most suitable mass r..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?