Regional Rural Bank : Big news for bank account holders. From May 1, the number of rural banks will decrease from 43 to 28. The government has given the green signal to the One State-One RRB policy. It will be implemented from May 1, 2025. If you are also a customer of these 43 regional banks of the country, then it is important for you to know what impact it will have on the customers. All these banks are from Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan.

The service of regional banks will be better

To make banking services better and affordable in rural areas across the country, the Central Government will merge 15 Regional Rural Banks (RRBs) operating in 11 states. After this big decision, the number of RRBs in the country will decrease from 43 to 28 from May 1, 2025. Its purpose is to improve the operations of banks.

Which states will be merged?

According to the notification, now there will be only one RRB bank in every state in Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan. A strong bank will be created by integrating all the RRBs present in each state. It will provide banking services in the rural areas of its state.

How will the merger happen?

1. In Andhra Pradesh, four RRB banks Chaitanya Godavari Gramin Bank, Andhra Pragathi Gramin Bank, Saptagiri Gramin Bank and Andhra Pradesh Gramin Vikas Bank will be merged to form Andhra Pradesh Gramin Bank. Its head office will be in Amaravati and the sponsor bank will be Union Bank of India.

2. In Uttar Pradesh, Baroda UP Bank, Aryavart Bank and Pratham UP Gramin Bank will be merged to form Uttar Pradesh Gramin Bank, whose head office will be in Lucknow. The sponsor bank will be Baroda Bank.

3. In West Bengal, Bangiya Gramin Vikas Bank, West Bengal Gramin Bank and North Bengal Regional Rural Bank will be merged to form West Bengal Gramin Bank.

4. In Bihar, South Bihar Gramin Bank and North Bihar Gramin Bank will be merged to form Bihar Gramin Bank. The sponsor will be Punjab National Bank.

5. In Gujarat, Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank will be merged to form Gujarat Gramin Bank.

6. In Jammu and Kashmir, J&K Gramin Bank and Ellaquai Rural Bank will be merged to form Jammu and Kashmir Gramin Bank. The head office will remain in Jammu.

7. Similarly, in Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan, two RRBs each will be merged to form one new RRB each.

How will the new RRB banks be?

The authorized capital of RRB will be Rs 2,000 crore. The management and operation of the new banks will be more efficient, which will provide better services to the customers.

This change has happened 3 times before

  • This is the fourth phase of integration of Regional Rural Banks.
  • In the first phase (2006-2010), the number of RRBs was reduced from 196 to 82.
  • In the second phase (2013-2015) it was reduced from 82 to 56.
  • In the third phase, it was reduced from 56 to 43. Now after the fourth phase, there will be 28 RRBs left.