Major RRB Amalgamation Brings Banking Revolution to Rural India

India initiates a significant banking transformation by merging 26 Regional Rural Banks (RRBs) into larger entities across 11 states and Union territories. This consolidation aims to enhance governance, improve credit access, and promote financial inclusion, primarily benefiting rural and semi-urban areas.

The Indian banking sector marks a new chapter with the consolidation of 26 Regional Rural Banks (RRBs) across 11 states and Union territories, effective today. This move, announced by the Department of Financial Services, promises strengthened governance and improved credit flow, significantly impacting financial inclusion efforts.

The merger, aligning with the 'One State One RRB' principle, represents the fourth phase of such amalgamations. Initiated after the successful integration phases since 2006, this strategic plan by the Ministry of Finance was rolled out for stakeholder consultation in November 2024.

With the latest amalgamation, 28 RRBs will function in 26 states and 2 UTs, operating over 22,000 branches predominantly in rural areas, covering about 92% of their locations in these regions. The RRBs, established in 1975, continue to focus on uplifting rural economies by providing essential credit and facilities.

(With inputs from agencies.)