'One state-one RRB' to become a reality from next month

FINMIN APPROVES CONSOLIDATION OF 15 RRBs

- OUR CORRESPONDENT

NEW DELHI: One state-one RRB will become a reality from next month as the Finance Ministry has issued notification for the consolidation of 15 Regional Rural Banks across 11 states to achieve better operational efficiency and cost rationalisation.

With this fourth round of consolidation of regional rural banks (RRBs), the number would reduce to 28 from the existing 43.

As per the gazette notification, RRBs in 11 states — Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan — are to be merged into one entity, respectively, for each of these to realise the goal of 'one state-one RRB.

The effective date for amalgamation has been fixed to May 1, as per the gazette notification dated April 5, 2026.

As per the notification, in line with the powers granted under Section 23A(1) of the Regional Rural Banks Act, 1976, these RRBs will merge into a single entity in the public interest and in the interest of the development of the area served by these entities and also in the interest of the Regional Rural Banks themselves.