Government Set To Implement "One State, One RRB"
The Indian government is set to implement the “One State, One RRB” (Regional Rural Bank) policy to improve operational efficiency, reduce competition, and consolidate the existing 43 RRBs into 28. The Ministry of Finance aims to streamline the functioning of these banks by merging smaller, less efficient ones, with the goal of enhancing their service delivery and cost-effectiveness. This initiative, which is part of a larger consolidation effort, builds on the previous rounds of RRB amalgamation that reduced their numbers from 196 to 43. The policy is expected to improve credit flow, particularly in rural areas, by strengthening RRBs’ financial positions and operational frameworks.
Summary/Static | Details |
Why in the news? | Government Set To Implement “One State, One RRB” |
Policy Name | One State, One RRB |
Goal | Improve efficiency, reduce competition, consolidate RRBs |
RRBs to be Merged | 43 to 28 |
Affected States | Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, etc. |
Bifurcation (Telangana) | Completed between APGVB and Telangana Grameena Bank |
Capital Infusion (2021-22) | Rs 5,445 crore over two years |
Profit (FY 2023-24) | Rs 7,571 crore (highest ever) |
Capital Adequacy Ratio (FY 2024) | 14.2% |
GNPA (FY 2024) | 6.1% (lowest in 10 years) |
RRB Act (Amendment, 2015) | Allowed RRBs to raise capital from non-government sources |
Current RRB Network | (March 2024) 43 RRBs, 22,069 branches, 700 districts |
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