Merger of 26 RRBs Under "One State, One RRB" Initiative

Current Context: The Department of Financial Services (DFS) under the Ministry of Finance has announced the merger of 26 Regional Rural Banks (RRBs) as part of the "One State, One RRB" initiative.

• This marks the fourth phase of RRB amalgamation, aimed at improving operational efficiency and reducing costs.

Key Details:

• Implementation Date: The new structure will take effect from May 1, 2025.
• Reduction in RRBs: The total number of RRBs will decrease from 43 to 28, covering 26 states and 2 union territories.
• Branch Network: Over 22,000 branches will operate across 700 districts, with 92% located in rural and semi-urban areas.
• Previous Phases: Earlier phases of amalgamation reduced RRBs from 196 to 82 (Phase I), 82 to 56 (Phase II), and 56 to 43 (Phase III).
• This initiative aims to enhance financial inclusion and streamline service delivery in rural areas.

Question:

Q.1 Under the "One State, One RRB" initiative, how many Regional Rural Banks (RRBs) will remain after the fourth phase of amalgamation?
a) 28
b) 43
c) 26
d) 56

Answer: a) As per the fourth phase of RRB amalgamation by DFS, the total number of RRBs will be reduced from 43 to 28.