'One State-One RRB': Regional Rural Banks cut from 43 to 28
On 21 July 2025, the Finance Ministry said Phase-IV amalgamation under 'One State-One RRB' had reduced Regional Rural Banks from 43 to 28 with effect from 1 May 2025.
Summary
The Ministry of Finance said on 21 July 2025 that Phase-IV amalgamation of Regional Rural Banks (RRBs), guided by the principle of 'One State-One RRB', reduced their number from 43 to 28 with effect from 1 May 2025, in 26 states and 2 UTs, through a Government of India notification dated 5 April 2025. Consolidation began in 2005-06: Phase-I (2005-2010) cut RRBs from 196 to 82, Phase-II (2012-14) from 82 to 56, and Phase-III (from 2019) from 56 to 43 by end-March 2021. A NABARD study, published by the RBI, found that earlier amalgamations improved the viability and financial performance of RRBs.
Key facts
- Phase-IV
- 43 to 28 RRBs, w.e.f. 1 May 2025
- Notification
- 5 April 2025
- Coverage
- 26 states and 2 UTs
- Phase-I (2005-10)
- 196 to 82
- Phase-II (2012-14)
- 82 to 56
- Phase-III (2019-21)
- 56 to 43
Practice MCQs 2 questions
After Phase-IV amalgamation under 'One State-One RRB', how many Regional Rural Banks remain with effect from 1 May 2025?
Show answer
Correct answer: C — 28
PIB (Finance): Phase-IV amalgamation reduced RRBs from 43 to 28 w.e.f. 1 May 2025, in 26 states and 2 UTs.
Consider the following statements about the consolidation of Regional Rural Banks: 1. Phase-I amalgamation (2005-2010) reduced the number of RRBs from 196 to 82. 2. Phase-IV amalgamation reduced the number of RRBs from 56 to 43. Which of the statements given above is/are correct?
Show answer
Correct answer: A — 1 only
PIB: Phase-I cut RRBs from 196 to 82, so 1 is correct. The 56-to-43 reduction was Phase-III (by end-March 2021); Phase-IV cut them from 43 to 28, so 2 is wrong.