Bank merged: Big news! 26 banks from 11 states merged in India, check complete details
The Department of Financial Services (DFS) announced this development in a post on X, calling it “a significant step towards stronger RRBs, better governance, improved credit flow and financial inclusion.”
Bank merged: The government’s plan to strengthen Regional Rural Banks (RRBs) has taken a major leap. The amalgamation of 26 RRBs across 11 states and Union Territories came into effect on Thursday, May 1.
The Department of Financial Services (DFS) announced the development in a post on X, calling it a “significant step toward strong RRBs, better governance, improved credit flow, and financial inclusion.”
The merger follows the ‘One State One RRB’ principle.
DFS had notified the amalgamation on April 8, marking the fourth phase of RRB consolidation.
The Finance Ministry began the latest consolidation push in November 2024 after consulting stakeholders.
The main goals were to improve scale efficiency and rationalise costs.
With this phase, India now has 28 RRBs operating in 26 states and two Union Territories. Together, they manage over 22,000 branches across 700 districts.
Nearly 92% of these branches are located in rural or semi-urban areas, ensuring deep rural outreach.
Earlier consolidation phases significantly reduced the number of RRBs:
Phase I (2006–2010): from 196 to 82
Phase II (2013–2015): from 82 to 56
Phase III (2019–2021): from 56 to 43
RRBs have played a vital role in rural India since their creation in 1975. They aim to boost the rural economy by offering credit and services to small farmers, agricultural workers, artisans, and small entrepreneurs.
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