New Delhi, April 8, 2025:
The Department of Financial Services (DFS) under the Ministry of Finance has notified the amalgamation of 26 Regional Rural Banks (RRBs) as part of the fourth phase of consolidation efforts aimed at strengthening the rural banking sector.
The move is intended to enhance the operational efficiency, financial stability, and outreach of RRBs, which play a crucial role in providing credit and banking services in rural areas. The amalgamation process is expected to lead to larger and stronger entities, better equipped to serve rural customers and support government initiatives related to financial inclusion and rural development.
The government has been pursuing the consolidation of RRBs in a phased manner to ensure they become more viable and competitive. This latest phase follows three earlier rounds of amalgamation, which significantly reduced the number of RRBs while improving their scale of operations.
The newly amalgamated entities will begin operations after completing the necessary legal and administrative formalities. The Department of Financial Services emphasized that the amalgamation will not disrupt existing services for customers and that measures are in place to ensure a smooth transition.
The consolidation drive is seen as a major step towards creating a more robust rural banking network capable of meeting the evolving needs of India’s rural economy.