Union Finance Ministry notifies amalgamation of 26 RRBs in 11States/UT

The Union Ministry of Finance has notified the amalgamation of 26 Regional Rural Banks (RRBs) in the country under phase 4 of the amalgamation of RRBs.

After the amalgamation takes effect on 1 May 2025, there will be  28 RRBs in 26 states and 2 Union Territories covering 700 districts of the country.

The central government started the process of amalgamation of RRBs in the country in 2025-06 to consolidate and rationalise the operation of RRBs in the country.

In the fourth phase, 26 RRBs in 10 states and 1 Union Territory are to be amalgamated. 

Amalgamation of RRBs

Amalgamation means the combination of two or more companies to create a new company. 

The process of amalgamation of the RRBs was started by the government of India in 2005-06 based on the recommendation of the Dr V S Vyas committee (2004) on “Flow of Credit to Agriculture and Related Activities from the Banking System”. 

The committee was set up by the RBI to examine the relevance of RRBs in the rural credit system and the alternatives for making it viable.

Phases of RRB amalgamation 

First phase focus-  RRBs promoted by sponsor banks within a state were amalgamated.

From 2005-06 to 2009-2010

RRB reduced from 196 to 82

Second Phase focus- RRBs were amalgamated across the Sponsor banks within a State.

From 2012-2013 to 2014-2015

RRB reduced from 82 to 56

Third Phase focus- principle of ‘One state - One RRB’, in smaller states and reduction in number of RRBs in larger states aiming at reduction in total number of RRBs. 

From 2018-19  to 2020-2021

RRB reduced from 56 to 43.

Fourth Phase focus - Continuation of the Third Phase.

RRB to be reduced from 43 to 28.

RRBs will be amalgamated in 10 States - Bihar, Uttar Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Madhya Pradesh, Maharashtra, Karnataka, West Bengal, Odisha, and one Union Territory of Jammu and Kashmir.

RRBs to be amalgamated during the 4th Phase

Following is the list of RRBs to be amalgamated, their new name, and sponsoring banks.

Andhra Pradesh

• Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank and Andhra Pradesh Grameena Vikas Bank sponsored by the Union Bank of India, Canara Bank, Indian Bank and State Bank of India to be amalgamated into Andhra Pradesh Grameena Bank.
• Head Office of Andhra Pradesh Grameena Bank-  Amravati
• Sponsor Bank of Andhra Pradesh Grameena Bank-  Union Bank of India

Bihar 

• Dakshin Bihar Gramin Bank and Uttar Bihar Gramin Bank, sponsored by the Punjab National Bank and Central Bank to be amalgamated into Bihar Gramin Bank. 
• Head Office of Bihar Gramin Bank - Patna
• Sponsor Bank of Bihar Gramin Bank- Punjab National Bank

Gujarat

• Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank, sponsored by the Bank of Baroda and the State Bank of India, are to be amalgamated into Gujarat Gramin Bank
• Head Office of Gujarat Gramin Bank- Vadodara
• Sponsor Bank of Gujarat Gramin Bank - Bank of Baroda

Karnataka 

• Karnataka Vikas Grameena Bank and Karnataka Gramin Bank, sponsored by the Canara Bank, are to be amalgamated into Karnataka Grameena Bank 
• Head office of Karnataka Grameena Bank- Ballari
• Sponsor of Karnataka Grameena Bank-  Canara Bank

Madhya Pradesh 

• Madhya Pradesh Gramin Bank and Madhyanchal Gramin Bank, sponsored by the Bank of India and the State Bank to be amalgamated into Madhya Pradesh Gramin Bank.
• Head office of Madhya Pradesh Gramin Bank-  Indore
• Sponsor of Madhya Pradesh Gramin Bank - Bank of India

Maharashtra

• Maharashtra Gramin Bank and Vidharbha Konkan Gramin Bank sponsored by Bank of Maharashtra and Bank of India to be amalgamated into Maharashtra Gramin Bank.
• Head office of Maharashtra Gramin Bank -  Chhatrapati Sambhaji Nagar
• Sponsor of  Maharashtra Gramin Bank - Bank of Maharashtra

Odisha

• Odisha Gramya Bank and Utkal Grameen Bank sponsored by the Indian Overseas Bank and State Bank of India to be amalgamated into Odisha Grameen Bank.
• Head office of Odisha Grameen Bank-  Bhubaneswar
• Sponsor of  Odisha Grameen Bank- Indian Overseas Bank

Rajasthan

• Rajasthan Marudhara Gramin Bank and Baroda Rajasthan Kshetriya Gramin Bank, sponsored by the State Bank of India and Bank of Baroda, are to be amalgamated into Rajasthan Gramin Bank.
• Head office of Rajasthan Gramin Bank - Jaipur
• Sponsor of  Rajasthan Gramin Bank - State Bank of India

Uttar Pradesh

• Baroda U.P. Bank, Aryavart Bank and Prathama U.P. Gramin Bank sponsored by the Bank of Baroda, Bank of India and Punjab National Bank to be amalgamated into Uttar Pradesh Gramin Bank.
• Head office of  Uttar Pradesh Gramin Bank- Lucknow
• Sponsor of Uttar Pradesh Gramin Bank- Bank of Baroda

West Bengal 

• Bangiya Gramin Vikash, Paschim Banga Gramin Bank, and Uttarbanga Kshetriya Gramin Bank, sponsored by the Punjab National Bank, UCO Bank, and Central Bank of India,are to be amalgamated into West Bengal Gramin Bank.
• Head office of West Bengal Gramin Bank- Kolkata
• Sponsor of West Bengal Gramin Bank- Punjab National Bank

Union Territory of Jammu and Kashmir

• J & K Grameen Bank and Ellaquai Dehati Bank sponsored by the The Jammu and Kashmir Bank Ltd. and State Bank of India are to be amalgamated into Jammu and Kashmir Grameen Bank 
• Head office of Jammu and Kashmir Grameen Bank - Jammu 
• Sponsor of Jammu and Kashmir Grameen Bank - The Jammu and Kashmir Bank Ltd. It is a private sector bank.

About Regional Rural Banks (RRB)

• Regional Rural Banks (RRB) were set up on the recommendation of the Narasimham Committee on Rural Credit 1975.
• Five RRBs were set up in India on 2 October 1975.  The first, Prathama Bank, was set up in Moradabad (U.P.), sponsored by Syndicate Bank. 
• The power to set up the RRB is vested with the government of India under the Regional Rural Banks Act 1976. 
• RBB is owned by the central government, the state government, and a sponsoring bank.
• The Reserve Bank of India is the regulator of RRBs.
• Jammu and Kashmir is the only private bank to sponsor an RRB.