NEW DELHI: The amalgamation of Regional Rural Banks (RRBs) has resulted in formation of a state-level RRB with contiguous area of operation leading to simplifying management and ease of service delivery, Finance Minister Nirmala Sitharaman said on Monday.
In a written reply to a question on the first day of the Parliament’s Monsoon Session, FM Sitharaman said that guided by the principle of 'One State-One RRB', the government continued with the process of further consolidation of RRBs in “Phase IV amalgamation” to achieve the benefits of scale efficiency and cost rationalisation, whereby number of RRBs has been reduced from 43 to 28 (with effect from May 1, 2025) in 26 states and 2 UTs.
“The RRBs have increased their capital base, enhancing the financial stability and resilience of the merged entity. By consolidating operations and eliminating redundancies on account of separate administrative structures, amalgamation is expected to lead to cost savings, ” the finance minister informed.