Consolidation of 26 Regional Rural Banks (RRBs) Completes

The recently merged Regional Rural Banks (RRBs) across 11 states and Union territories has taken effect on today (Thursday).

"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," Department of Financial Services said in a blog on X.

On April 8th On April 8th, The Department of Financial Services (DFS) announced the merger from 26 Regional Rural banks (RRBs) according to the concept of "One State, One RRB'.

The fourth stage in the merger of the RRBs!

With regard to the increase in effectiveness of the RRBs as a result of amalgamations, The Ministry of Finance rolled out an amalgamation strategy in November 2024 to consult with all stakeholders.

Following financial inclusion with stakeholders the merger of 26 RRBs from 10 States and 1UT has been completed with a main attention to improving the efficiency of scale and cost reduction.

Following the latest amalgamation the number of RRBs will increase to 28 RRBs across 26 states and 2 UTs, with greater than 22,000 branches spanning 700 districts.

Their main operating area is rural areas with around 92 percent of branches operating in semi-urban or rural areas.

According to the announcement the new entity will have its head office in Amravati while Union Bank of India sponsors the RRB.

Each of Uttar Pradesh and West Bengal will have three RRBs combined into a single RRB.

Baroda UP Bank along with Aryavart Bank and Prathama UP Gramin Bank which received support from Bank of Baroda, Bank of India and Punjab National Bank merged into Uttar Pradesh Gramin Bank with its main office located at Lucknow under Bank of Baroda's sponsorship.