FCC

One State One RRB Plan

2025-04-10

The Central government is set to roll out the “One State One Regional Rural Bank (RRB)” reform plan aimed at streamlining rural banking services across India. As part of this plan, 43 existing RRBs will be consolidated into 28, aligning each RRB with a specific state to ensure improved efficiency, operational coherence, and enhanced rural financial outreach. Led by the Ministry of Finance and supported by NABARD, the merger is expected to address overlapping jurisdictions and optimise resource use. The plan also aims to strengthen financial inclusion by enabling better governance, reducing duplication, and enhancing credit delivery mechanisms to rural populations.

States like Assam, Odisha, and Uttar Pradesh will be among the key beneficiaries, where multiple RRBs currently operate. The reform is designed to complement the government’s broader goals of digital banking penetration and streamlined rural lending.

Following the merger, each RRB will be sponsored by a public sector bank, in line with state-level cooperative banking strategies. The central government believes this restructuring will foster stronger financial institutions, reduce administrative overhead, and better align rural banking with national development priorities. Implementation is expected to begin soon with stakeholder consultations underway.