The Centre has merged 26 RRBs across 11 states and union territories, strengthening the rural banking sector. This consolidation aligns with the "One State One RRB" policy.
India strengthens state rural banks by merging 26 RRBs. This strategic move aligns with the "One State One RRB" policy, aiming to streamline operations and enhance rural banking services.
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Simplify banking structures
This merger marks the fourth phase of the government's efforts to restructure RRBs. By merging multiple RRBs within each state, the government aims to improve economies of scale, reduce administrative costs, and simplify banking structures.
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India has 28 RRBs
With this latest phase, India now has 28 RRBs operating in 26 states and two union territories. These banks collectively operate over 22,000 branches, covering approximately 700 districts across the country.
The consolidation of RRBs has been a gradual process spanning nearly two decades. This fourth phase continues the trend of creating larger, stronger rural banks. Established in 1975, RRBs have played a vital role in advancing rural development. The current consolidation process seeks to empower these banks to operate more efficiently.
