Starting May 1, 2025, each state in India will have only one Regional Rural Bank (RRB). The Finance Ministry has issued a notification announcing the merger of 15 RRBs in 11 states as part of the fourth phase of the consolidation process. This move will reduce the total number of RRBs in the country from 43 to 28.
The states where these mergers will take place include Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha,
and Rajasthan. The goal of this initiative is to achieve a “one state-one RRB” model. The merger is being carried out under Section 23A (1) of the Regional Rural Banks Act, 1976.
Details of State-Wise RRB Mergers
In Andhra Pradesh, four RRBs—Chaitanya Godavari Gramin Bank, Andhra Pragati Gramin Bank, Saptagiri Gramin Bank,
and Andhra Pradesh Gramin Vikas Bank—will be merged to form the new Andhra Pradesh Gramin Bank. These banks are sponsored by Union Bank of India, Canara Bank, Indian Bank, and State Bank of India.
In Uttar Pradesh, Baroda UP Bank, Aryavart Bank, and Prathama UP Gramin Bank will be merged into Uttar Pradesh Gramin Bank, with its headquarters in Lucknow. Bank of Baroda will be the sponsoring bank.
In West Bengal, Bangiya Gramin Vikas Bank, West Bengal Gramin Bank, and Uttarbang Regional Rural Bank will be merged to form West Bengal Gramin Bank.
Eight more states will each see two of their RRBs merged into one:
Bihar: South Bihar Gramin Bank and North Bihar Gramin Bank → Bihar Gramin Bank (HQ: Patna)
Gujarat: Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank → Gujarat Gramin Bank
Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan will undergo similar mergers.
After the merger, each new RRB will have an authorized capital of ₹2,000 crore.