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Mumbai, May 5 – In a key meeting held in Mumbai today, Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS), reviewed the performance and amalgamation progress of Regional Rural Banks (RRBs). The meeting was attended by senior officials from DFS, NABARD, Sponsor Banks, SIDBI, RBI, and Chairpersons of all RRBs across the country.
During the meeting, the Secretary emphasized the importance of the One State-One RRB policy. He urged sponsor banks to play a more active role in guiding RRBs through the amalgamation process, technology upgrades, and human resource management. He stressed that these steps are essential to improve efficiency and enhance service delivery in rural and semi-urban regions.
Shri Nagaraju called upon the sponsor banks and RRBs to jointly develop a 5-year roadmap to overcome current and future challenges. He highlighted the need for RRBs to expand their reach, modernize operations, and reduce financial risk—while still maintaining their strong grassroots presence that is essential for rural banking.
As of March 2025, the combined business of all RRBs in the country has reached an impressive ₹12.40 lakh crore, showcasing their vital role in promoting financial inclusion and providing credit in underserved areas.
Looking ahead, RRBs have been encouraged to focus lending on agriculture and allied sectors, micro, small and medium enterprises (MSMEs), and government-sponsored schemes, which are crucial for rural economic development. Also Read: DFS Secretary Reviewed Functioning of NABARD. Read meeting Highlights.
The review marks a significant step toward strengthening the RRB network, ensuring it becomes more resilient, tech-driven, and better equipped to support India’s rural economy.
Recently, the Government of India has merged the RRBs in a state. Now there will be only one RRB in a state. Click here to download One State One RRB Merger Gazette Notification PDF.
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