25 RRBs merged into 10

Restructuring of RRBs by merging geographically contiguous RRBs sponsored by different banks within a state is in progress in order to consolidate RRBs segment. During the first 9 months of the current fiscal 25 such banks have been merged into 10. Now the number of RRBs stands at 67 till the first week of Jan 2013. RRBs have a network of about 16,000 branches spread across the rural and semi-urban centres of the country.

What is the aim of consolidation?

  • The consolidation of RRBs has been progressing since 2005 following the recommendation of a committee chaired by RBI Deputy Governor K C Chakrabarty which decided to recapitalize 40 selected RRBs in 21 states.
  • These mergers will boost the capital base of RRBs and improving efficiencies as well as optimizing the use of modern technology.

Where did these mergers take place?

  • States where the mergers took place are Bihar, Karnataka, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and Uttarakhand.

The Centre’s shareholding in RRBs is 50%, while 35% and 15% are with the sponsor banks and state governments, respectively.



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