The "One State-One RRB" strategy will shortly be put into action by the Finance Ministry. This will save expenses, improve operating efficiency, and cut the number of Regional Rural Banks (RRBs) from forty-three to twenty-eight.
Bank loan Sources claim that the fourth phase of mergers will shortly start, with the majority of the consolidation's foundation already laid. According to the ministry's plan, 15 RRBs that are active in different states will combine. Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan are among the states named for consolidation, along with Andhra Pradesh, which currently has the most RRBs (4), Uttar Pradesh, and West Bengal (3 each).
Further consolidation in Telangana has been made possible by the completion of the asset and liability split between Telangana Grameena Bank and Andhra Pradesh Grameena Vikas Bank (APGVB). Bank loan These banks have already undergone capital infusions in order to get ready for the mergers.
An important turning point for RRBs occurred in the fiscal year 2021–2022, when the Center promised to contribute Rs 5,445 crore over two years to fortify their capital basis. Against this environment, RRBs posted their highest-ever consolidated net profit of Rs 7,571 crore in 2023–2024, indicating notable performance improvements. As of March 31, 2024, their capital adequacy ratio also hit a record 14.2%, while their asset quality, as determined by Gross Non-Performing Assets (GNPA), was at a decade-low 6.1%.
Through three stages of merger, the number of RRBs decreased from 196 to 43 by 2020–21 as a result of the structural consolidation process, which started in 2004–05. RRBs were founded in accordance with the Regional Rural Banks Act of 1976 in order to offer small farmers, agricultural laborers, and rural craftspeople financial services and financing.
In 2015, the Act underwent a significant revision that permitted RRBs to obtain funding from sources other than sponsor banks, state governments, and the federal government. Bank loan At the now, sponsor banks own 35% and state governments own 15% of each RRB, while the Central Government owns 50%. According to the modified law, the combined stock of the sponsor public sector banks and the Center cannot drop below 51%, even with future stake erosion.
As of March 31, 2024, the 43 RRBs operate a network of 22,069 branches across 26 states and 3 Union Territories—Puducherry, Jammu & Kashmir, and Ladakh—serving 700 districts. These banks are increasingly embracing technology, with more RRBs offering digital services to their rural customer base.
RRB Proposed Merger List
| State | Bank Name | Sponsor Bank | Proposed |
| Sponsor Bank | |||
| Andhra Pradesh | Andhra Pragathi Grameena Bank | Canara Bank | Canara Bank |
| Chaitanya Godavari Grameena Bank | Union Bank of India | ||
| Saptagiri Grameena Bank | Indian Bank | ||
| Andhra Pradesh Grameena Vikas Bank | State Bank of India | ||
| Telangana | Andhra Pradesh Grameena Vikas Bank | State Bank of India | State Bank of India |
| Telangana Grameena Bank | State Bank of India | ||
| Assam | Assam Gramin Vikash Bank | Punjab National Bank | Punjab National Bank |
| Arunachal Pradesh | Arunachal Pradesh Rural Bank | State Bank of India | State Bank of India |
| Bihar | Uttar Bihar Gramin Bank | Central Bank of India | Punjab National Bank |
| Dakshin Bihar Gramin Bank | Punjab National Bank | ||
| Chhattisgarh | Chhattisgarh Rajya Gramin Bank | State Bank of India | State Bank of India |
| Gujarat | Saurashtra Gramin Bank | State Bank of India | Bank of Baroda |
| Baroda Gujarat Gramin Bank | Bank of Baroda | ||
| Haryana | Sarva Haryana Gramin Bank | Punjab National Bank | Punjab National Bank |
| Himachal Pradesh | Himachal Pradesh Gramin Bank | Punjab National Bank | Punjab National Bank |
| Jharkhand | Jharkhand Rajya Gramin Bank | State Bank of India | State Bank of India |
| Jammu & Kashmir | J&K Grameen Bank | J&K Bank Ltd. | J & k Bank |
| Ellaquai Dehati Bank | State Bank of India | ||
| Karnataka | Karnataka Gramin Bank | Canara Bank | Canara Bank |
| Karnataka Vikas Grameena Bank | Canara Bank | ||
| Kerala | Kerala Gramin Bank | Canara Bank | |
| Maharashtra | Maharashtra Gramin Bank | Bank of Maharashtra | Bank of Maharashtra |
| Vidharbha Konkan Gramin Bank | Bank of India | ||
| Madhya Pradesh | Madhya Pradesh Gramin Bank | Bank of India | Bank of India |
| Madhyanchal Gramin Bank | State Bank of India | ||
| Manipur | Manipur Rural Bank | Punjab National Bank | Punjab National Bank |
| Meghalaya | Meghalaya Rural Bank | State Bank of India | State Bank of India |
| Mizoram | Mizoram Rural Bank | State Bank of India | State Bank of India |
| Nagaland | Nagaland Rural Bank | State Bank of India | State Bank of India |
| Orissa | Utkal Grameen Bank | State Bank of India | Indian Overseas Bank |
| Odisha Gramya Bank | Indian Overseas Bank | ||
| Punjab | Punjab Gramin Bank | Punjab National Bank | Punjab National Bank |
| Puducherry | Puduvai Bharathiar Grama Bank | Indian Bank | Indian Bank |
| Rajasthan | Baroda Rajasthan Kshetriya Gramin Bank | Bank of Baroda | Bank of Baroda |
| Rajasthan Marudhara Gramin Bank | State Bank of India | ||
| Tamilnadu | Tamil Nadu Grama Bank | Indian Bank | Indian Bank |
| Tripura | Tripura Gramin Bank | Punjab National Bank | |
| Uttar Pradesh | Aryavart Bank | Bank of India | Bank of Baroda |
| Baroda UP Bank | Bank of Baroda | ||
| Prathama UP Gramin Bank | Punjab National Bank | ||
| Uttarakhand | Uttarakhand Gramin Bank | State Bank of India | State Bank of India |
| West Bengal | Bangiya Gramin Vikash Bank | Punjab National Bank | Punjab National Bank |
| Paschim Banga Gramin Bank | UCO Bank | ||
| Uttar Banga Kshetriya Gramin Bank | Central Bank of India |
Good initiative
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