The Government of India has officially implemented the amalgamation of 26 Regional Rural Banks (RRBs) across 11 states and Union Territories.
This marks the fourth and latest phase of RRB consolidation aimed at strengthening rural banking infrastructure and deepening financial inclusion across the country.
The announcement was made by the Department of Financial Services (DFS) under the Ministry of Finance, which described the move as a ‘significant step toward strong RRBs, better governance, improved credit flow and financial inclusion.’ The restructuring adheres to the ‘One State, One RRB’ principle and follows the formal notification issued by DFS on 8th April, 2025.
With this consolidation, the total number of RRBs has now been brought down to 28, operating across 26 states and two Union Territories. Collectively, these banks manage over 22,000 branches that serve nearly 700 districts, of which nearly 92 per cent are situated in rural and semi-urban regions. This reinforces the core mandate of RRBs to support India’s agrarian economy and the underserved rural population.
The current merger phase was initiated following stakeholder consultations in November 2024. It forms part of a larger multi-phase reform strategy designed to enhance scale efficiency, streamline governance, and lower operational costs within the rural banking ecosystem.
Since their inception in 1975, RRBs have played a pivotal role in delivering credit and essential banking services to small and marginal farmers, agricultural labourers, rural artisans, and small-scale entrepreneurs.
With each phase of consolidation, from reducing 196 RRBs in 2006 to 43 by 2021, the government has sought to ensure that these institutions remain relevant, financially stable, and technologically equipped to meet the evolving demands of India’s rural economy.
Send news announcements/press releases to:
info@b2bmarketmedia.com
