Published on 13 Oct 2025
Department of Financial Services (DFS) has notified amalgamation of 26 Regional Rural banks (RRBs) on the principles of “One State One RRB”.
Amalgamation is a process where two or more existing banks combine to form a new, single company.
The move aims to strengthen the operational efficiency, financial viability, and regional focus of RRBs.
At present, 43 RRBs are functioning in 26 States and 2 UTs.
Post amalgamation, there will be 28 RRBs in 26 states and 2 UTs with more than 22000 branches covering 700 districts.
Their predominant area of operation is in rural areas with approx. 92% of branches in rural/semi urban areas.
The amalgamation is being carried out under Section 23A(1) of the Regional Rural Banks Act, 1976, which allows such mergers in the public interest and for the development of the regions they serve.
This is the fourth phase of amalgamation and the previous 3 phases led to reduction of RRBs from 196 to 43.
RRBs were set up in 1975 based on the recommendations of the Narasimham Committee on Rural Credit, under the Regional Rural Banks Act, 1976.
RRBs are jointly owned by the Central Government (50%), the Sponsor Bank (35%), and the concerned State Government (15%).
Amalgamation of RRBs
RRB
Regional Rural Banks
Banking
Financial Inclusion
RBI
Reserve Bank of India
Monetary Policy
Department of Financial Services
DFS
One State One RRB
Narasimham Committee
NABARD