Starting May 1, 2025, the Centre’s One State One RRB coverage comes into effect in order to considerably restructure the USA’s Regional Rural Bank (RRB) community. As per a Finance Ministry statement, 26 RRBs across 11 states and one Union Territory had been amalgamated, reduce the total amount of RRBs from 43 to 28.
About One State One RRB Policy
The policy aims to strengthen the operational efficiency, financial viability, and nearby recognition of RRBs. The new structure will see over 22,000 branches of 28 RRBs serving nearly 700 districts, with 92 % of these branches located in rural and semi-urban areas, confirm the original mandate of RRBs: to sell financial inclusion in rural India.
All restructured RRBs may have a permitted capital of ₹2,000 crore, giving them a more potent base for credit score enhancement and financial support in their respective states.
196 RRBs reduced to 43 since 2006
This One State One RRB policy marks the 4th first section of RRB consolidation. Earlier stages in 2006 and 2021 had reduced the number of RRBs from 196 to 43. The cutting-edge section builds on the great results of in-advance mergers, such as improved cost efficiency and larger scale of operations.
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