Bank Merger: These 11 States To Have Only One Regional Rural Bank (RRB) From May 1st, Announces Union Govt

Under the "One State, One RRB" policy, the Union government announced on Wednesday that 15 Regional Rural Banks (RRBs) in 11 states will combine. This action will take effect on May 1, 2025, with the goal of simplifying banking services in rural areas. The number of regional rural banks operating across the country has now decreased from 43 to 28 following the fourth round of RRB consolidation.

The central government released a gazetted notification that read these RRBs will combine into a single organisation and inherit their individual properties, powers, rights, liabilities, and duties in accordance with the authority granted under Section 23A(1) of the Regional Rural Banks Act, 1976.

'One State, One RRB': Which States are Affected by Merger?

According to the gazette notification, RRBs in 11 states; Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan are among the states impacted by this consolidation. With effect from May 1, 2025, each state will have a single RRB, consolidating the current ones into a single organisation per state.

In total, these banks run approximately 22,069 branches over 700 districts, with around 92% of them situated in rural and semi-urban areas. As per the notification, the combination of multiple banks from various states in an effort to establish bigger, more reliable regional institutions.

State-Wise RRB Merger Details

Below are the state-wise RRBs' names with their headquarters: Andhra Pradesh: The Andhra Pradesh Grameena Bank, which will be sponsored by Union Bank of India and have its headquarters in Amravati, would be formed by the merger of Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank, and Andhra Pradesh Grameena Vikas Bank.

Karnataka: In Karnataka, Karnataka Vikas Grameena Bank and Karnataka Gramin Bank will merge to form Karnataka Grameena Bank, headquartered in Ballari and sponsored by Canara Bank.

Bihar: In Bihar, Punjab National Bank will finance the merger of Dakshin Bihar Gramin Bank and Uttar Bihar Gramin Bank to form Bihar Gramin Bank, which will have its headquarters in the state capital Patna.

Jammu and Kashmir (J&K): J&K Grameen Bank and Ellaquai Dehati Bank will combine to become Jammu and Kashmir Grameen Bank, which will have its head office in Jammu and will be supported by Jammu and Kashmir Bank Ltd.

Gujarat: In Gujarat, With Bank of Baroda (BOB) as a sponsor, Gujarat Gramin Bank and Saurashtra Gramin Bank will combine to become Gujarat Gramin Bank, which will have its main branch office in Vadodara.

West Bengal: West Bengal Gramin Bank, headquartered in Kolkata and sponsored by Punjab National Bank, is going to be formed by the merging of Bangiya Gramin Vikash Bank, Paschim Banga Gramin Bank, and Uttarbanga Kshetriya Gramin Bank.

Uttar Pradesh (UP): In Uttar Pradesh, Baroda UP Bank, Aryavart Bank, and Prathama UP Gramin Bank will merge to become Uttar Pradesh Gramin Bank, which is planned to be headquartered in Lucknow and sponsored by Bank of Baroda.

Odisha: In Odisha, Indian Overseas Bank will finance the merger of Odisha Gramya Bank and Utkal Grameen Bank to become Odisha Grameen Bank, which will have its headquarters in Bhubaneswar.

Rajasthan: Under the sponsorship of State Bank of India (SBI), Rajasthan Marudhara Gramin Bank and Baroda Rajasthan Kshetriya Gramin Bank will combine to become Rajasthan Gramin Bank, with a headquarter in Jaipur.

Maharashtra: With its headquarters located in Chhatrapati Sambhajinagar, Maharashtra Gramin Bank and Vidarbha Konkan Gramin Bank will combine to become Maharashtra Gramin Bank in Maharashtra, which is supported by the Bank of Maharashtra.

Madhya Pradesh: Madhya Pradesh Gramin Bank and Madhyanchal Gramin Bank will merge to become Madhya Pradesh Gramin Bank, which will be sponsored by Bank of India (BOI) and have its headquarters in Indore.

The goal of the new structure is to increase the RRBs' efficiency and reduce competition among public sector banks in order to improve operational efficiency and rationalise costs.