Page 30 - Banking Finance July 2025

ARTICLE

needs to small and marginal farmers, artisans and mendations of the Dr. Vyas Committee (2001) which was
people of rural communities. constituted by the Reserve Bank of India.
(iii) Greater focus on rural development: The unified RRB Phase 1 (2006 - 2010): RRBs sponsored by the same bank
in each state can concentrate more effectively on rural
within a state were amalgamated. RRBs were reduced from
development projects for the benefit of rural people.
196 to 82.
(iv) Good Governance: As there is only one RRB in one
state so the policy will improve state-wise planning, Phase 2 (2013 - 2015): RRBs across different sponsor banks
strategy and accountability. within a state were amalgamated. RRBs were reduced from
82 to 56.
(v) Cost reduction: Reduction of number of RRBs leads to
cost reduction in managing RRBs. Phase 3 (2019 - 2021): The third phase focused on the 'OS-
(vi) Proper utilization of human resource: Idle staff can RR' principle, reducing RRBs in larger states. As a result, the
be utilized properly. Optimum utilization of human re- number of RRBs dropped from 196 in 2005 to 43 by March
source increases the administrative efficiency. 2021.
Phase 4 (2025 onwards): Under 'OS-OR' the consolidation
Phases of amalgamation: of RRBs has reduced the total number from 43 to 28. The

Due to duplication of services, high operational costs and 4th phase of Regional Rural Bank (RRB) consolidation un-
to increase access of technology in the banking services the der the "One State, One RRB" plan has been rolled out in
consolidation of RRBs began in 2005, following the recom- 10 states and one Union Territory.

Table: 1 Post Amalgamation List of Regional Rural Banks in India

State/ Union Number of RRBs Present number Name of RRB
Territory before amalgamation of RRBs
Andhra Pradesh 04 01 Andhra Pradesh Grameena Bank
Arunachal Pradesh 01 01 Arunachal Pradesh Rural Bank
Assam 01 01 Assam Gramin Vikash Bank
Bihar 02 01 Bihar Gramin Bank
Chhattisgarh 01 01 Chhattisgarh Rajya Gramin Bank
Gujarat 02 01 Gujarat Gramin Bank
Haryana 01 01 Sarva Haryana Gramin Bank
Himachal Pradesh 01 01 Himachal Pradesh Gramin Bank
Jammu and Kashmir 02 01 Jammu and Kashmir Grameen Bank
Jharkhand 01 01 Jharkhand Rajya Gramin Bank
Karnataka 02 01 Karnataka Grameena Bank
Kerala 01 01 Kerala Gramin Bank
Madhya Pradesh 02 01 Madhya Pradesh Gramin Bank
Maharashtra 02 01 Maharashtra Gramin Bank
Manipur 01 01 Manipur Rural Bank
Meghalaya 01 01 Meghalaya Rural Bank
Mizoram 01 01 Mizoram Rural Bank
Nagaland 01 01 Nagaland Rural Bank
Odisha 02 01 Odisha Gramin Bank

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