The Financial Services Department (DFS) has given green lights to 26 regional rural banks (RRBs) under the “One State One RRB” policy to merge state and level institutions. This fourth phase of consolidation, effective 01 May 2025, reduces the total number of RRBs from 43 to 28. Spread over 26 states and two center areas, merged banks will operate more efficiently, with more than 22,000 branches, about 700 districts, of which about 92% of which are in rural and semi -earbb areas.
26 RRB merged in 4th phase under ‘One State One RRB’
Regional Rural Banks (RRB) as part of the fourth phase of the Sammelan process, 26 RRBs were merged with 11 new institutions. The move is aligning with the ‘One State One RRB’ policy, which aims to strengthen the rural banking ecosystem, reduce administrative overheads and to strengthen the rural banking ecosystem by ensuring uniformity in service distribution. The merger is expected to promote financial inclusion and improve credit flows in rural areas. This process also allows for better resource usage and technology integration in merged banks.
Single new bank per state/UT: All RRBs in a state merge into a transfere bank.
Property and Liabilities Transfer: Each branch, loan book, deposit, and legal obligation run originally in the new unit.
capital structure: Each new bank has an authorized capital of ₹ 2,000 crore (200 million shares of ₹ 10 each). Subscribed share capital is equal to the capital paid by the preceding banks.
Sponsor bank roles: The current sponsor bank (for example, SBI, Punjab National Bank, Canara Bank, etc.) continues its support with a major city of the state or the head office located in UT.
State-wise RRB merger
The RRB merger was performed in many states, with each newly formed RRB, the consolidation of existing regional banks within that state was represented. State-wise distribution has been highlighted how individual RRBs were combined as integrated structures under the revised banking model.
| State-wise RRB merger: observation | |||
| State/UT | New bank name | Sponsor bank | Head Office |
| Andhra Pradesh | Andhra Pradesh Gramena Bank | Union bank of india | Amravati |
| Bihar | Bihar Gramin Bank | Punjab national bank | Patna |
| Gujarat | Gujarat Gramin Bank | Bank of Baroda | let them |
| Jammu and Kashmir (Out) | Jammu and Kashmir Gramin Bank | Jammu and Kashmir Bank Limited | Jammu |
| Karnataka | Karnataka grameena bank | Canra bank | Score |
| Madhya Pradesh | Madhya Pradesh Gramin Bank | Bank of india | Indore |
| Maharashtra | Maharashtra Gramin Bank | Bank of Maharashtra | Chhatrapati sambhajinagar |
| Odisha | Odisha rural bank | Indian Overseas Bank | Bhuvaneshwar |
| Rajasthan | Rajasthan Gramin Bank | state Bank of India | Jaipur |
| Uttar pradesh | Uttar Pradesh Gramin Bank | Bank of Baroda | Lucknow |
| West Bengal | West Bengal Gramin Bank | Punjab national bank | Kolkata |
RRB’s equity share capital
The equity share capital of regional rural banks is shared between the Central Government (CG), the State Government (SG) and the sponsor bank. This distribution reflects the collaborative approach to the management and support of the RRB, ensuring their financial stability and operational support. The updated share capital figures later outline the continuous commitment of all stakeholders in strengthening rural banking institutions.
Benefits of RRB merger
Extensive Branch Network: Customers gain access to more branches and ATMs across the state.
Uniform Product Prasad: Standardized loan plans and deposit rates simplify customer options.
Technology Integration: Shared IT platforms mean rapid transaction processing and better digital services.
Increased capital basis: A strong balance sheet allows for large credit disbursement for farmers and small businesses.
RRB merger history
Step I (2006–10): RRB cut from 196 to 82
Step II (2013-15): Reduced from 82 to 56
Phase III (2019–21): Prayed from 56 to 43 ahead
Phase IV (2025): Now 28 RRBs have been consolidated
