The Government of India, through its Ministry of Finance, has sent a letter to the heads of Sponsor Banks of Regional Rural Banks (RRBs) about merging some RRBs.
What is this about?
According to Section 23A of the RRB Act, 1976, the Central Government can merge two or more RRBs in a state if it’s in the public interest.
But they must first discuss this with NABARD (National Bank for Agriculture and Rural Development), the State Government, and the Sponsor Bank.
Why are they merging RRBs?
The Government wants RRBs to save money, use technology better, and grow stronger.
They started merging RRBs back in 2004-05. Because of this, the number of RRBs reduced from 196 to 43 by 2020-21.
What’s the new plan?
The goal now is to have only one RRB in each state.
This will help the banks work more efficiently and save costs. So, the Government has prepared a plan to reduce the number of RRBs from 43 to 28 by merging more of them.
This plan has been made after discussions with NABARD.
What’s next?
A list of which RRBs will be merged in each state is attached in the letter.
The Government has asked the Sponsor Banks to review this plan and share their feedback or agreement based on Section 23A of the RRB Act, 1976.
This feedback is needed to move forward with the merging process to make One State One RRB.
| State | Bank Name | Sponsor Bank | Proposed |
| Sponsor Bank | |||
| Andhra Pradesh | Andhra Pragathi Grameena Bank | Canara Bank | Canara Bank |
| Chaitanya Godavari Grameena Bank | Union Bank of India | ||
| Saptagiri Grameena Bank | Indian Bank | ||
| Andhra Pradesh Grameena Vikas Bank | State Bank of India | ||
| Telangana | Andhra Pradesh Grameena Vikas Bank | State Bank of India | State Bank of India |
| Telangana Grameena Bank | State Bank of India | ||
| Assam | Assam Gramin Vikash Bank | Punjab National Bank | Punjab National Bank |
| Arunachal Pradesh | Arunachal Pradesh Rural Bank | State Bank of India | State Bank of India |
| Bihar | Uttar Bihar Gramin Bank | Central Bank of India | Punjab National Bank |
| Dakshin Bihar Gramin Bank | Punjab National Bank | ||
| Chhattisgarh | Chhattisgarh Rajya Gramin Bank | State Bank of India | State Bank of India |
| Gujarat | Saurashtra Gramin Bank | State Bank of India | Bank of Baroda |
| Baroda Gujarat Gramin Bank | Bank of Baroda | ||
| Haryana | Sarva Haryana Gramin Bank | Punjab National Bank | Punjab National Bank |
| Himachal Pradesh | Himachal Pradesh Gramin Bank | Punjab National Bank | Punjab National Bank |
| Jharkhand | Jharkhand Rajya Gramin Bank | State Bank of India | State Bank of India |
| Jammu & Kashmir | J&K Grameen Bank | J&K Bank Ltd. | J & k Bank |
| Ellaquai Dehati Bank | State Bank of India | ||
| Karnataka | Karnataka Gramin Bank | Canara Bank | Canara Bank |
| Karnataka Vikas Grameena Bank | Canara Bank | ||
| Kerala | Kerala Gramin Bank | Canara Bank | |
| Maharashtra | Maharashtra Gramin Bank | Bank of Maharashtra | Bank of Maharashtra |
| Vidharbha Konkan Gramin Bank | Bank of India | ||
| Madhya Pradesh | Madhya Pradesh Gramin Bank | Bank of India | Bank of India |
| Madhyanchal Gramin Bank | State Bank of India | ||
| Manipur | Manipur Rural Bank | Punjab National Bank | Punjab National Bank |
| Meghalaya | Meghalaya Rural Bank | State Bank of India | State Bank of India |
| Mizoram | Mizoram Rural Bank | State Bank of India | State Bank of India |
| Nagaland | Nagaland Rural Bank | State Bank of India | State Bank of India |
| Orissa | Utkal Grameen Bank | State Bank of India | Indian Overseas Bank |
| Odisha Gramya Bank | Indian Overseas Bank | ||
| Punjab | Punjab Gramin Bank | Punjab National Bank | Punjab National Bank |
| Puducherry | Puduvai Bharathiar Grama Bank | Indian Bank | Indian Bank |
| Rajasthan | Baroda Rajasthan Kshetriya Gramin Bank | Bank of Baroda | Bank of Baroda |
| Rajasthan Marudhara Gramin Bank | State Bank of India | ||
| Tamilnadu | Tamil Nadu Grama Bank | Indian Bank | Indian Bank |
| Tripura | Tripura Gramin Bank | Punjab National Bank | |
| Uttar Pradesh | Aryavart Bank | Bank of India | Bank of Baroda |
| Baroda UP Bank | Bank of Baroda | ||
| Prathama UP Gramin Bank | Punjab National Bank | ||
| Uttarakhand | Uttarakhand Gramin Bank | State Bank of India | State Bank of India |
| West Bengal | Bangiya Gramin Vikash Bank | Punjab National Bank | Punjab National Bank |
| Paschim Banga Gramin Bank | UCO Bank | ||
| Uttar Banga Kshetriya Gramin Bank | Central Bank of India |
