Amalgamation of 26 RRBs Begins Today

The amalgamation of Regional Rural Banks (RRBS) spanning across 11 states and Union territories has come into effect today, May 1.

The Department of Financial Services said in a post on X, “Amalgamation of 26 Regional Rural Banks (RRBs) in 11 States/UT takes effect from today, marking a significant step toward strong RRBs, better governance, improved credit flow and financial inclusion.”

The Department of Financial Services (DFS) notified the amalgamation of 26 Regional Rural banks (RRBs) on the principles of ‘One State One RRB’ on April 8.

Notably, this was the fourth phase of the amalgamation of RRBs.

Taking note of the improved efficiency of Regional Rural Banks (RRBs) following successive amalgamations in the past, the Ministry of Finance rolled out a fresh amalgamation plan in November 2024, subject to stakeholder consultations.

After the consultation, over 26 RRBs have been amalgamated in 10 States and 1 UT with a focus to improve scale efficiency and rationalise costs.

The latest amalgamation will result in 28 RRBs across 26 states and 2 UTs with more than 22,000 branches covering 700 districts.

Previously, the number of RRBs was slashed from 196 to 82 in Phase-I (FY 2006 to FY 2010), while Phase-2 (FY 2013 - FY 2015) saw RRBs reducing to 56 from 82 earlier. Meanwhile, in Phase 3 (FY 2019 to FY 2021) the number of RRBs were reduced from 56 to 43.