In a major reform aimed at strengthening rural banking, the Department of Financial Services (DFS) has announced the merger of 26 Regional Rural Banks (RRBs) under the “One State, One RRB” policy. This is the fourth phase of RRB amalgamation and will come into effect from May 1, 2025. The objective is to improve efficiency, reduce operational costs, and ensure better banking services in rural areas. According to the government notification, the merged entities will carry all responsibilities, assets, and liabilities of the earlier banks.
Under this new structure, Andhra Pradesh will see the merger of Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank, and Andhra Pradesh Grameena Vikas Bank into the Andhra Pradesh Grameena Bank, headquartered in Amravati and sponsored by Union Bank of India. In Bihar, Dakshin Bihar Gramin Bank and Uttar Bihar Gramin Bank will combine to form the Bihar Gramin Bank, based in Patna and sponsored by Punjab National Bank. Gujarat will merge Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank into Gujarat Gramin Bank, headquartered in Vadodara and sponsored by Bank of Baroda.
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In the Union Territory of Jammu & Kashmir, J&K Grameen Bank and Ellaquai Dehati Bank will form the Jammu and Kashmir Grameen Bank, headquartered in Jammu and sponsored by Jammu and Kashmir Bank Ltd. Karnataka will see Karnataka Vikas Grameena Bank and Karnataka Gramin Bank merge into Karnataka Grameena Bank, with its head office in Ballari and sponsored by Canara Bank. Madhya Pradesh will combine Madhya Pradesh Gramin Bank and Madhyanchal Gramin Bank into a single entity named Madhya Pradesh Gramin Bank, headquartered in Indore and sponsored by Bank of India.
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In Maharashtra, Maharashtra Gramin Bank and Vidarbha Konkan Gramin Bank will become the new Maharashtra Gramin Bank, based in Chhatrapati Sambhajinagar and supported by Bank of Maharashtra. Odisha will merge Odisha Gramya Bank and Utkal Grameen Bank into Odisha Grameen Bank, headquartered in Bhubaneswar and sponsored by Indian Overseas Bank. Rajasthan will consolidate Rajasthan Marudhara Gramin Bank and Baroda Rajasthan Kshetriya Gramin Bank into Rajasthan Gramin Bank, headquartered in Jaipur and supported by State Bank of India.
In Uttar Pradesh, three RRBs—Baroda UP Bank, Aryavart Bank, and Prathama UP Gramin—will combine to form the Uttar Pradesh Gramin Bank, with its headquarters in Lucknow and sponsorship by Bank of Baroda. Lastly, West Bengal will see the merger of Bangiya Gramin Vikash Bank, Paschim Banga Gramin Bank, and Uttarbanga Kshetriya Gramin Bank into West Bengal Gramin Bank, headquartered in Kolkata and sponsored by Punjab National Bank.
This strategic move will help streamline rural banking operations, enhance customer service, and support inclusive financial growth across the country.
