Regional Rural Bank (RRB): Starting May 1, 2025, the number of rural banks in India will reduce from 43 to 28, as the government rolls out the One State-One RRB policy.
This change will affect regional rural banks in 11 states, including Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan.
If you’re a customer of any of these banks, it’s important to know how this will impact your account and services.
Banking Services in Villages to Improve
To strengthen and simplify rural banking, the central government has approved the merger of 15 RRBs across these 11 states.
With this move, there will be only 28 RRBs left in the country from May 1. This step aims to streamline operations and improve services in rural areas.
States Where RRBs Will Be Merged
As per the official announcement, each of these 11 states will have just one RRB, which will be created by merging the existing regional rural banks.
Here’s how the merger will take place:
Andhra Pradesh
Banks Merged: Chaitanya Godavari Gramin Bank, Andhra Pragathi Gramin Bank, Saptagiri Gramin Bank, Andhra Pradesh Gramin Vikas Bank
New Bank: Andhra Pradesh Gramin Bank
Head Office: Amaravati
Sponsor: Union Bank of India
Uttar Pradesh
Banks Merged: Baroda UP Bank, Aryavart Bank, Pratham UP Gramin Bank
New Bank: Uttar Pradesh Gramin Bank
Head Office: Lucknow
Sponsor: Bank of Baroda
West Bengal
Banks Merged: Bangiya Gramin Vikas Bank, West Bengal Gramin Bank, North Bengal RRB
New Bank: West Bengal Gramin Bank
Bihar
Banks Merged: South Bihar Gramin Bank, North Bihar Gramin Bank
New Bank: Bihar Gramin Bank
Sponsor: Punjab National Bank
Gujarat
Banks Merged: Baroda Gujarat Gramin Bank, Saurashtra Gramin Bank
New Bank: Gujarat Gramin Bank
Jammu and Kashmir
Banks Merged: J&K Gramin Bank, Ellaquai Dehati Bank
New Bank: Jammu and Kashmir Gramin Bank
Head Office: Jammu
Other States
In Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan, two RRBs in each state will be merged into one.
What Will the New Banks Be Like?
Authorized Capital: ₹2,000 crore
The management of the new banks will be stronger, making services faster and more efficient.
Customers can expect better banking facilities in rural areas.
This Merger Has Happened Before
This is the fourth time RRBs are being merged:
1st phase (2006–2010): Reduced from 196 to 82 banks
2nd phase (2013–2015): From 82 to 56
3rd phase: From 56 to 43
4th phase (May 2025): From 43 to 28
Current Status of RRBs
43 RRBs operate across 26 states and 2 union territories
22,069 branches, mostly in rural and semi-urban areas
92% of branches are in villages and small towns
RRBs serve customers in 700+ districts
Financial Performance
In FY 2023–24, RRBs posted their highest profit ever: ₹7,571 crore
Their capital adequacy ratio (CRAR) was 14.2% as of March 31, 2024
Their GNPA (Gross Non-Performing Asset) ratio was 6.1% – the lowest in 10 years
Government’s Investment Plan
To strengthen RRBs, the government had invested ₹5,445 crore in 2021–22.
These banks were created under the RRB Act of 1976 to support small farmers, workers, and rural artisans.
Since the law was amended in 2015, RRBs can now raise capital from sources other than the government.
Ownership of RRBs:
50% Central Government
35% Sponsor Bank
15% State Government
