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

10 Apr 2025 CW Team

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.

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