DFS Secretary reviews Regional Rural Banks and amalgamation plan in Mumbai
DFS Secretary M. Nagaraju reviewed the performance of Regional Rural Banks and progress on the One State-One RRB amalgamation plan in Mumbai on 5 May 2025.
Summary
Regional Rural Banks (RRBs) were reviewed by M. Nagaraju, Secretary, Department of Financial Services, in Mumbai on 5 May 2025, along with progress on the amalgamation plan under One State-One RRB. Chairman NABARD and officials of sponsor banks, SIDBI and the Reserve Bank of India attended. RRBs now have more than 22,000 branches covering 700 districts, with over 92% of branches in rural or semi-urban areas. They recorded a consolidated net profit of ₹7,148 crore in FY 2024-25, and gross NPAs fell to 5.3%, the lowest in a decade. Sponsor banks were asked to complete the integration process by 30 September 2025 and to draft a five-year roadmap for RRBs.
Key facts
- Date / place
- 5 May 2025, Mumbai
- Reviewed by
- M. Nagaraju, Secretary, DFS
- Policy
- One State-One RRB
- Reach
- 22,000+ branches, 700 districts; 92%+ rural/semi-urban
- FY25 net profit
- ₹7,148 crore
- GNPA
- 5.3%, lowest in a decade
- Integration deadline
- 30 September 2025
Practice MCQs 3 questions
As per the review of 5 May 2025, the gross NPA of Regional Rural Banks reached a new low of:
Show answer
Correct answer: B — 5.3%
RRBs' GNPA reached 5.3%, the lowest in a decade.
What consolidated net profit did Regional Rural Banks record in FY 2024-25?
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Correct answer: A — ₹7,148 crore
RRBs recorded a consolidated net profit of ₹7,148 crore in FY 2024-25.
Consider the following statements about Regional Rural Banks (RRBs) as reviewed in May 2025: 1. RRBs have more than 22,000 branches covering 700 districts. 2. Sponsor banks were asked to complete the integration process by 30 September 2025. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct, as per the DFS review held in Mumbai on 5 May 2025.