One State, One RRB: 26 Banks Merging into 11 Banks from May 1, 2025

EaseMoney News Desk, Delhi, 1 May 2025: A major push to power the rural banking and simplify the structure of Regional Rural Banks (RRBS) all over India. The Ministry of Finance (Government of India) has announced the merger of 26 RRBs across 11 states into 11 single RRBs from 1 May 2025. This is part of the “One State, One RRB Policy” to reform the banking system for better efficiency, digital infrastructure, and financial inclusion in rural parts of India.

What’s Changing?

This is the fourth phase of the amalgamation of RRBs in India, and according to the Ministry of Finance notification dated April 7, 2025, the following 26 RRBs will be merged into 11 new entities (name):

State-Wise List of RRB Mergers –

State	Old RRBs Being Merged	New Merged RRB	Sponsor Bank	Head Office
Odisha	Odisha Gramya Bank + Utkal Grameen Bank	Odisha Grameen Bank	Indian Overseas Bank	Bhubaneswar
Gujarat	Baroda Gujarat Gramin Bank + Saurashtra Gramin Bank	Gujarat Gramin Bank	Bank of Baroda	Vadodara
Uttar Pradesh	Baroda UP Bank + Aryavart Bank + Prathama UP Gramin Bank	Uttar Pradesh Gramin Bank	Bank of Baroda	Lucknow
Rajasthan	Rajasthan Marudhara Gramin Bank + Baroda Rajasthan Kshetriya Gramin Bank	Rajasthan Gramin Bank	State Bank of India	Jaipur
Maharashtra	Maharashtra Gramin Bank + Vidarbha Konkan Gramin Bank	Maharashtra Gramin Bank	Bank of Maharashtra	Chhatrapati Sambhajinagar
Karnataka	Karnataka Gramin Bank + Karnataka Vikas Grameena Bank	Karnataka Grameena Bank	Canara Bank	Ballari
West Bengal	Bangiya Gramin Vikash Bank + Paschim Banga Gramin Bank + Uttarbanga Kshetriya Gramin Bank	West Bengal Gramin Bank	Punjab National Bank	Kolkata
Madhya Pradesh	Madhya Pradesh Gramin Bank + Madhyanchal Gramin Bank	Madhya Pradesh Gramin Bank	Bank of India	Indore
Jammu & Kashmir	J&K Grameen Bank + Ellaquai Dehati Bank	Jammu and Kashmir Grameen Bank	J&K Bank Ltd	Jammu
Andhra Pradesh	Andhra Pradesh Grameena Vikas Bank + Chaitanya Godavari Grameena Bank	Andhra Pradesh Grameen Bank	State Bank of India	Vijayawada
Bihar	Dakshin Bihar Gramin Bank + Uttar Bihar Gramin Bank	Bihar Gramin Bank	Central Bank of India	Patna

Key Points for These mergers, Regional Rural Banks Customers:

1. No immediate changes to account numbers, IFSC codes, passbooks, or digital services. You will be notified by the bank.
2. All existing services of the old RRBs will continue post-merger until technical migration is completed or new instructions are issued.
3. Customers are advised to follow official bank notifications for updates.

Ministry of Finance (MoF) says:

The merger is aimed at easier governance and ensuring a stronger rural banking network supported by strong sponsor banks.

said a senior Finance Ministry official.

Background

RRBs were established under the RRB Act, 1976 to serve the banking needs of rural India customers such as farmers, street vendors, sellers, and women in village areas. They are jointly owned by the Government of India, state governments, and sponsor banks. Among sponsor banks, SBI leads with 14 RRBs, followed by Punjab National Bank (9) and Canara Bank (4).

Last Financial Performance of RRBs:

• FY 2023-24 Net Profit: ₹7,571 crore (highest ever).
• Gross NPA: 6.1% (lowest in 10 years).
• Capital Adequacy Ratio: 14.2%.

These numbers show us the growing strength and reliability of our old and classic India’s RRB network, which caters to over 30 crore rural customers across states.

Why This Merger?

• Reduce duplication of services within states, and simple to collect assets and data.
• Strengthen rural credit delivery and support small/marginal farmers.
• Modernise banking operations through common platforms.
• Improve accountability and efficiency.

Related News:

1. The Utkal Grameen Bank has got new name from May 1, 2025.