'One State, One RRB' to boost RRBs lending in agriculture and allied activities: Financial Services Secretary
Emphasizing the importance of the amalgamation, the Financial Services Secretary M Nagaraju has said that with the implementation of ‘One State, One RRB’, regional rural banks will expand their lending in agriculture and allied activities, MSME and government-sponsored schemes. In order to further improve the viability and financial performance of the rural banks, the government has implemented ‘One State, One RRB’ under which 26 regional rural banks across 11 states and Union territories have been amalgamated into standalone RRBs.
As per finance ministry’s reported data the RRBs have grown in their reach to more than 22,000 branches, covering 700 districts in the country, and more than 92 per cent of their branches are in rural and semi-urban areas. During 2024-25, RRBs have recorded a consolidated net profit of Rs 7,148 crore with Gross Non-Performing Assets (GNPA) reaching to a new low of 5.3 per cent, which the lowest in a 10-year period.
It was decided that the sponsor banks, in consultation with the RRBs, will draft a five-year roadmap for the latter. He also urged the rural banks to continue to focus on their amalgamation process and long-term sustainability. He added that the sponsor banks have been asked to guide the RRBs in their amalgamation process and provide a level-playing field for long-term sustainability. Further, the sponsor banks should continue to facilitate technology upgrades in the RRBs and complete the integration process, adhering to the strict timeline of September 30.
Nagaraju also suggested the sponsor banks and RRBs address the human resource-related issues emerging in the process. The ‘One State, One RRB’ has been in-effective since May 1,2025. The amalgamation has reduced the number of RRBs from 43 to 28, to further improve the viability and financial performance of the rural banks.
