Regional Rural Bank Merger: 15 RRBs to Combine into One per State from May 1

New Delhi, India — In a major structural reform, the Government of India has approved the merger of 15 Regional Rural Banks (RRBs) across 11 states under the One State-One RRB policy. Effective from May 1, 2025, this move will reduce the total number of RRBs in the country from 43 to 28, aiming to streamline rural banking operations and improve financial services in underserved areas.

Major Shift in Rural Banking Structure

The decision, announced via official notification, is part of the fourth phase of consolidation of Regional Rural Banks. The central government aims to create a single, stronger RRB in each participating state to enhance operational efficiency, service delivery, and cost-effectiveness in rural banking.

This merger will affect customers across Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan, where all existing RRBs will be consolidated into one per state.

Which Banks Are Being Merged?

Here’s a breakdown of the key mergers state-wise:

• Andhra Pradesh:
  Chaitanya Godavari Gramin Bank, Andhra Pragathi Gramin Bank, Saptagiri Gramin Bank, and Andhra Pradesh Gramin Vikas Bank will merge to form Andhra Pradesh Gramin Bank.
  Head Office: Amaravati
  Sponsor Bank: Union Bank of India

• Uttar Pradesh:
  Baroda UP Bank, Aryavart Bank, and Pratham UP Gramin Bank will be merged to form Uttar Pradesh Gramin Bank.
  Head Office: Lucknow
  Sponsor Bank: Bank of Baroda

• West Bengal:
  Bangiya Gramin Vikas Bank, West Bengal Gramin Bank, and North Bengal Regional Rural Bank will combine to form West Bengal Gramin Bank.

• Bihar:
  South Bihar Gramin Bank and North Bihar Gramin Bank will be merged to create Bihar Gramin Bank.
  Sponsor Bank: Punjab National Bank

• Gujarat:
  Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank will form Gujarat Gramin Bank.

• Jammu and Kashmir:
  J&K Gramin Bank and Ellaquai Rural Bank will become Jammu and Kashmir Gramin Bank.
  Head Office: Jammu

• In Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan, two RRBs each will be merged similarly into a single state-level RRB.

What It Means for Customers

The new RRBs will have an authorized capital of ₹2,000 crore, and their management will be designed for more professional governance and centralized operations. The government aims to increase banking reach, accelerate digital services, and reduce service redundancy for rural customers.

There will be no immediate disruption in customer services, and account holders can continue to use existing services with further updates expected post-merger.

Background: RRB Consolidation in India

This is the fourth phase of RRB restructuring:

• Phase 1 (2006–2010): RRBs reduced from 196 to 82

• Phase 2 (2013–2015): Further reduced to 56

• Phase 3: Number reduced to 43

• Phase 4 (2025): Will bring down the total to 28 RRBs

This consolidation marks a strategic step toward modernizing rural banking, ensuring stronger capital backing, and enabling uniform service standards across states.