One State, One RRB Scheme: Big news for common people. A new system is going to be introduce from May 1. Yes you’ve heard it right. One State-One Regional Rural Bank (RRB) scheme is going to be implemented from May 1. The Union Finance Ministry has recently approved the merger of 15 regional rural banks. Under this, notification has been issued for the merger of 15 regional rural banks in 11 states. In this way, with this fourth round of merger of regional rural banks, the number of existing 43 RRBs will now decrease to 28. Currently, 43 RRBs are functioning in 26 states and 2 union territories.
What is One State, One RRB Scheme?
Actually, this is a reform plan of the Department of Financial Services, Ministry of Finance, which aims to establish and consolidate regional rural banks within the states as a single unit. This process was started in the year 2005 on the basis of the recommendations of Dr. Vyas Committee. Its objective is to improve the operational efficiency and banking governance of RRBs and rationalize banking operating costs. Along with this, there is a proper use of human and technical resources in banks.
The Vyas Committee believed that by doing this, competition between RRBs located within a state will end and all of them will be able to work as a single unit. In accordance with the powers conferred under Section 23A (1) of the Regional Rural Banks Act, 1976, these RRBs are being merged in public interest.
Integration progress review on 6 May
Union Finance Minister Nirmala Sitharaman will review the implementation and progress of ‘One State-One RRB’ on May 6. According to sources, during this time the Finance Minister will hold a meeting with the Regional Rural Banks and review various issues including integration. To achieve the goal of ‘One State-One RRB’, Regional Rural Banks of 11 states – Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan will be merged to form one RRB unit for each.
Where and which banks are being integrated
In Andhra Pradesh, Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank and Andhra Pradesh Grameena Vikas Bank sponsored by Union Bank of India, Canara Bank, Indian Bank and State Bank of India are to be merged into a single regional rural bank called ‘Andhra Pradesh Gramin Bank’. Similarly in Uttar Pradesh, Baroda UP Bank, Aryavarta Bank and Prathama UP Gramin Bank sponsored by Bank of Baroda, Bank of India and Punjab National Bank will be merged into ‘Uttar Pradesh Gramin Bank’ with head office in Lucknow under the sponsorship of Bank of Baroda.
In case of West Bengal, Bangiya Gramin Vikash, Paschim Banga Gramin Bank and Uttar Banga Kshetriya Gramin Bank sponsored by Punjab National Bank, UCO Bank and Central Bank of India will be merged into ‘West Bengal Gramin Bank’ with head office at Kolkata under the sponsorship of Punjab National Bank. Two RRBs each in Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan will be merged into one.