Target RBI Grade B 2025
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Merger of 15 Rural Banks in the Country

Fourth Phase: Number of Banks to Reduce from 43 to 28

New Delhi: The process of merging Regional Rural Banks (RRBs) is underway, and as per the new notification, the total number of such banks will now decrease to 28 from the existing 43. The fourth phase of the merger has been launched, aiming to strengthen RRBs and make banking facilities more accessible to rural customers.

The merging process involves states like Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Odisha, Maharashtra, Uttar Pradesh, Bihar, Chhattisgarh, and Rajasthan, which will all see the amalgamation of their RRBs.

The state with the maximum number of RRBs is Uttar Pradesh, with five RRBs set to merge into three. Maharashtra, Karnataka, and Rajasthan will each have three RRBs post-merger, while other states will see reductions as well.

This merger aims to boost the efficiency and reach of rural banks, as recommended by a 2005 report. The ultimate goal is to achieve consolidation, allowing RRBs to function with greater financial strength and outreach.
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