Revamping Rural Finances: One State-One RRB Vision Mobilizes Consolidation

The finance ministry has initiated the consolidation of 15 Regional Rural Banks across 11 states to enhance operational efficiency. Slated to take effect on May 1, the move aims to reduce RRB numbers from 43 to 28, advocating a 'one state-one RRB' policy, ensuring financial sustainability and improved services.

In a strategic move, India's finance ministry is set to consolidate 15 Regional Rural Banks (RRBs) across 11 states, aiming for better efficiency and cost-effectiveness. The initiative, which takes effect on May 1, marks the fourth consolidation phase, trimming the existing 43 RRBs down to 28.

According to the gazette notification from April 5, 2026, states including Andhra Pradesh, Uttar Pradesh, and West Bengal will see 3 RRBs merged into one per state. Meanwhile, Bihar, Gujarat, and Jammu & Kashmir, among others, will experience a consolidation from two RRBs to one.

This consolidation effort seeks to promote financial sustainability and enhance service offerings in rural areas. Stemming from legislation amendments, RRBs are also enabled to secure capital from outside the government sector, further boosting their growth potential and operational reach.

(With inputs from agencies.)