On 8 April 2025, the Department of Financial Services (DFS) under the Ministry of Finance announced the amalgamation of 26 Regional Rural Banks (RRBs) as part of the fourth phase of consolidation, following the principle of “One State, One RRB.” This move aims to improve operational efficiency, rationalize costs, and enhance rural financial inclusion.
The merger, based on stakeholder consultations since November 2024, covers RRBs in 10 states and one union territory. With this move, the number of RRBs is now reduced from 43 to 28, operating over 22,000 branches across 700 districts, with 92% branches in rural and semi-urban areas.
The government has been implementing RRB mergers in phases:
- Phase 1 (2006–2010): RRBs reduced from 196 to 82
- Phase 2 (2013–2015): Reduced to 56
- Phase 3 (2019–2021): Reduced to 43
- Phase 4 (2025): Now 28 RRBs remain
The reform is expected to boost the scale and efficiency of RRB operations and support India’s broader financial inclusion goals.
