New Delhi: The Union Ministry of Finance is working on a plan to merge Regional Rural Banks (RRBs) under the “One State, One RRB” policy, aiming to reduce their number from 43 to around 30. This move seeks to enhance operational efficiency and eliminate unnecessary competition among public sector banks sponsoring these RRBs.
Based on performance, the policy will involve merging RRBs within each state under a single sponsor bank. The ministry aims to improve service quality by streamlining the structure, particularly in areas like mobile banking technology.
A senior government official emphasized that the focus is on improving the quality of banking services, rather than merely reducing the number of RRBs. The consolidation is expected to optimize resource allocation and boost the technological infrastructure of these rural banks.
