The merger list of Regional Rural Banks (RRBs) is ready and the Union Finance Ministry has requested feedback from sponsor banks by November 20 regarding the proposed merger of regional rural banks (RRBs). The goal of this consolidation is to improve efficiency and reduce costs. Sponsor Banks have to submit their comments by 15 November 2024. In any state, if there are two or more RRBs, they will be merged and a new sponsor bank will be proposed. The list of new sponsor bank is as follows:
| State | Name of RRB | Sponsor Bank | Proposed Sponsor Bank |
| Andhra Pradesh | Andhra Pragathi Grameena Bank | Canara Bank | Canara Bank |
| Chaitanya Godavari Grameena Bank | Union Bank of India | ||
| Saptagiri Grameena Bank | Indian Bank | ||
| Andhra Pradesh Grameena Vikas Bank (AP Part) | State Bank of India | ||
| Bihar | Dakshin Bihar Gramin Bank | Punjab National Bank | Punjab National Bank |
| Uttar Bihar Gramin Bank | Central Bank of India | ||
| Gujarat | Baroda Gujarat Gramin Bank | Bank of Baroda | Bank of Baroda |
| Saurashtra Gramin Bank | State Bank of India | ||
| Jammu & Kashmir | Ellaquai Dehati Bank | State Bank of India | J&K Bank Ltd. |
| J&K Grameen Bank | J&K Bank Ltd. | ||
| Karnataka | Karnataka Gramin Bank | Canara Bank | Canara Bank |
| Karnataka Vikas Grameena Bank | Canara Bank | ||
| Madhya Pradesh | Madhya Pradesh Gramin Bank | Bank of India | Bank of India |
| Madhyanchal Gramin Bank | State Bank of India | ||
| Maharashtra | Maharashtra Gramin Bank | Bank of Maharashtra | Bank of Maharashtra |
| Vidharbha Konkan Gramin Bank | Bank of India | ||
| Odisha | Odisha Gramya Bank | Indian Overseas Bank | Indian Overseas Bank |
| Utkal Grameen Bank | State Bank of India | ||
| Rajasthan | Baroda Rajasthan Kshetriya Gramin Bank | Bank of Baroda | Bank of Baroda |
| Rajasthan Marudhara Gramin Bank | State Bank of India | ||
| Telangana | Andhra Pradesh Grameena Vikas Bank (Telangana Part) | State Bank of India | State Bank of India |
| Telangana Grameena Bank | State Bank of India | ||
| Uttar Pradesh | Aryavart Bank | Bank of India | Bank of Baroda |
| Baroda UP Bank | Bank of Baroda | ||
| Prathama UP Gramin Bank | Punjab National Bank | ||
| West Bengal | Bangiya Gramin Vikash Bank | Punjab National Bank | Punjab National Bank |
| Paschim Banga Gramin Bank | UCO Bank | ||
| Uttar Banga Kshetriya Gramin Bank | Central Bank of India |
Under the proposal, the RRB with the largest business volume – based on total deposits and advances – within each state will be designated as the main or “transferee” RRB. Additionally, the sponsor bank of this leading RRB, which has the most extensive business volume and branch network, will continue as the sponsor bank of the newly amalgamated RRB.
To simplify naming, a standardized format may be adopted for the new RRB names. The core banking solution (CBS) platform of the transferee RRB be used as the unified platform for the merged entity. This approach would help reduce costs and streamline the process of data migration and system integration.
The Finance Ministry noted that RRBs play a critical role in rural expansion and are closely connected to local communities, particularly through their understanding of regional agricultural and geographical conditions. To maintain this unique role, the ministry emphasized the need for further consolidation toward a “One State-One RRB” model. This restructuring aims to enhance efficiency and achieve cost savings.
In collaboration with NABARD, a roadmap has been established to guide this next phase of consolidation, known as Phase IV amalgamation. If implemented, this phase will reduce the number of RRBs from the current 43 to 28.
