Finance Minister To Review 'One State-One RRB' Implementation On May 6

New Delhi, Apr 19 (KNN) Finance Minister Nirmala Sitharaman is likely to review the implementation and progress of the 'One State-One RRB' initiative on May 6. 

The consolidation effort, which aims to achieve better operational efficiency and cost rationalization, will come into effect from May 1, merging 15 Regional Rural Banks (RRBs) across 11 states.

This fourth round of consolidation will reduce the total number of RRBs in the country from 43 to 28. According to sources, the Finance Minister's scheduled meeting with RRBs will address various issues, including the ongoing consolidation process.

The consolidation affects RRBs in 11 states: Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan. Each state will now have a single RRB entity, fulfilling the 'One State-One RRB' objective.

In Andhra Pradesh, four banks—Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank, and Andhra Pradesh Grameena Vikas Bank—will merge to form Andhra Pradesh Grameena Bank. 

These banks were previously sponsored by Union Bank of India, Canara Bank, Indian Bank, and State Bank of India respectively.

For Uttar Pradesh, Baroda UP Bank, Aryavart Bank, and Prathama UP Gramin Bank will be consolidated into Uttar Pradesh Gramin Bank with its headquarters in Lucknow under Bank of Baroda's sponsorship. 

These banks were earlier sponsored by Bank of Baroda, Bank of India, and Punjab National Bank.

In West Bengal, three banks—Bangiya Gramin Vikash, Paschim Banga Gramin Bank, and Uttarbanga Kshetriya Gramin Bank—will merge to form West Bengal Gramin Bank, headquartered in Kolkata under Punjab National Bank's sponsorship. 

These banks were previously under the sponsorship of Punjab National Bank, UCO Bank, and Central Bank of India.

The remaining states—Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan—will each see their two existing RRBs consolidated into a single entity.

(KNN Bureau)