Finance Ministry notifies amalgamation of 26 Regional Rural Banks in fourth phase
The Department of Financial Services on 8 April 2025 notified the amalgamation of 26 RRBs in 10 states and 1 UT on the principle of 'One State One RRB', reducing the number of RRBs from 43 to 28.
Summary
The Department of Financial Services (DFS), Ministry of Finance, notified on 8 April 2025 the amalgamation of 26 Regional Rural Banks (RRBs) in 10 states and 1 Union Territory on the principle of 'One State One RRB', the fourth phase of RRB amalgamation. The plan was rolled out for consultation in November 2024, with a focus on scale efficiency and cost rationalisation. Before this, 43 RRBs functioned in 26 states and 2 UTs; after amalgamation there will be 28 RRBs in 26 states and 2 UTs, with more than 22,000 branches covering 700 districts, about 92% of them in rural or semi-urban areas. In earlier phases the number of RRBs fell from 196 to 82 (FY 2006-FY 2010), 82 to 56 (FY 2013-FY 2015) and 56 to 43 (FY 2019-FY 2021).
Key facts
- Notified
- 8 April 2025, Department of Financial Services
- Phase
- Fourth
- RRBs merged
- 26, in 10 states and 1 UT
- Principle
- One State One RRB
- Number of RRBs
- 43 → 28 (26 states, 2 UTs)
- Network
- 22,000+ branches, 700 districts; ~92% rural/semi-urban
- Earlier phases
- 196 → 82 → 56 → 43
Practice MCQs 3 questions
How many Regional Rural Banks were amalgamated in the fourth phase notified on 8 April 2025?
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Correct answer: B — 26
26 RRBs in 10 states and 1 UT; the total number of RRBs falls from 43 to 28.
After the fourth phase of amalgamation, how many RRBs will function in the country?
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Correct answer: D — 28
28, in 26 states and 2 UTs, with more than 22,000 branches.
Consider the following statements about RRB amalgamation: 1. The fourth phase follows the principle of 'One State One RRB'. 2. In Phase-I (FY 2006 to FY 2010), the number of RRBs was reduced from 196 to 82. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct. The fourth phase is based on 'One State One RRB', and Phase-I cut RRBs from 196 to 82.