Ministry of Finance

Posted On: 24 JUL 2018 4:05PM by PIB Delhi

With a view to enable Regional Rural Banks (RRBs) to minimize their overhead expenses, optimize the use of technology, enhance the capital base and area of operation and increase their exposure, the Government has sought comments of respective State Governments and Sponsor Banks on a roadmap for Amalgamation of RRBs within a State.

The roadmap has been prepared in consultation with NABARD and proposes to bring down the number of RRBs to 38 from the present 56. It is expected that the proposed amalgamation of RRBs will bring about better scale-efficiency, higher productivity, robust financial health of RRBs, improved financial inclusion and greater credit flow to rural areas.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha today.

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DSM/RM/KA

Amalgamation of regional rural banks to consolidate operations, broaden capital base and boost rural credit flow. Amalgamation of Regional Rural Banks is proposed as a regulatory roadmap to consolidate RRBs within each State, prepared in consultation with NABARD and seeking comments from State Governments and Sponsor Banks, aiming to minimise overheads, optimise technology, enhance capital base and area of operation, increase lending exposure, and improve scale-efficiency, productivity, financial health, financial inclusion and rural credit flow.