Regional Rural Banks

RRBs must boost their lending in agriculture, allied activities: DFS secy

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, Financial Services Secretary M Nagaraju said on Monday. During a meeting to review the performance of the regional rural banks (RRBs) and the progress on their amalgamation plan, Nagaraju asked the sponsor banks and RRBs to recognise the challenges that lie ahead. 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, the finance ministry said in a statement. The RRBs recorded a consolidated net profit of Rs 7,148 crore in 2024-25. The Gross Non-Performing Assets (GNPA) have reached a new low of 5.3 per cent, the lowest in a 10-year period, the ministry said. During the meeting chaired by the secretary, it was decided that the sponsor banks, in consultation with the RRBs, will draft a

Regional banks to function under 'One State, One RRB' from today: Details

28 Regional Rural Banks, down from 43, with more than 22,000 branches, will serve 700 districts in India

RBI mandates 2.5% additional run-off factor on digital retail deposits

Final norms will come into effect from April 1, 2026

Sitharaman to assess RRB consolidation as 'One state-one RRB' takes effect

Finance Minister Nirmala Sitharaman is likely to review the implementation and progress of 'One state-one RRB' on May 6. One state-one RRB will become a reality from May 1 with consolidation of 15 Regional Rural Banks across 11 states to achieve better operational efficiency and cost rationalisation. With this fourth round of consolidation of regional rural banks (RRBs), the number would reduce to 28 from the existing 43. According to sources, the Finance Minister is scheduled to hold a meeting with RRBs and review various issues including consolidation. RRBs in 11 states - Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan - are to be merged into one entity, for each of these to realise the goal of One state-one RRB. In Andhra Pradesh, Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank and Andhra Pradesh Grameena Vikas Bank sponsored by Union Bank of ...

FinMin to hold high-level talks on 'One State, One RRB' execution on May 6

On April 7, the Union government released a gazette notification announcing the amalgamation of several RRBs, effective from May 1, 2025

FinMin to implement 'one state, one RRB' soon to improve efficiency

The finance ministry will soon implement the 'One State-One RRB' plan to achieve operational efficiency and cost rationalisation and consolidation of 43 regional rural banks (RRBs) to 28. Most of the work related to the issue of consolidation have been completed and the fourth round would happen soon, according to sources. As per the roadmap prepared by the finance ministry, 15 RRBs operating in various states would be merged. Among states that will see consolidation of RRBs include Andhra Pradesh, which has the maximum number of RRBs (4), Uttar Pradesh and West Bengal (3 each), and Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan (2 each). In the case of Telangana, sources said, the issue related with bifurcation of assets and liabilities of Andhra Pradesh Grameena Vikas Bank (APGVB) between APGVB and Telangana Grameena Bank have concluded. As a precursor to consolidation, the capital infusion was done in these RRBs. The financial yea

RRBs earned record profit of Rs 7,571 cr in FY24: Govt tells Rajya Sabha

Regional Rural Banks (RRBs) have earned a record profit of Rs 7,571 crore during 2023-24, Parliament was informed on Tuesday. "Financial health of RRBs has improved in the recent years as they have posted highest ever consolidated net profit of Rs 7,571 crore during 2023-24. Also, the RRBs have shown consistent improvement in key financial parameters like CRAR, deposits, advances, NPA, CD ratio etc," Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. The key financial parameters of RRBs have improved consistently in past years, he said, adding that the total balance sheet size of RRBs have increased from Rs 7,04,556 crore in 2021-22 to Rs 8,40,080 crore in 2023-24. Further, the net NPA has declined from 4.7 per cent in 2021-22 to 2.4 per cent in 2023-24, he said. Also, the credit-to-deposit ratio has increased from 64.5 per cent in 2021-22 to 71.4 per cent in 2023-24, he added. "The government has also reviewed the progress made by RRBs in .

RRBs get five more years to amortise additional pension liabilities

RRBs were earlier permitted to amortise their liability on account of the Employee Pension Scheme 2018 over five years

Boost credit flow to allied agri activities: FM Nirmala Sitharaman to RRBs

FM also directed Uttar Bihar Gramin Bank to increase credit flow to fisheries and foxnut (makhana) to realise the full potential of these activities in the region

PM Modi visualises women-led economic growth for India: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Friday asserted that PM Narendra Modi was of the view that women would steer economic growth in the country, which was on its way to becoming the third largest economy in the world. She was speaking at a credit outreach programme held in the north Bihar town of Darbhanga, where she was joined by cabinet colleague Chirag Paswan and Deputy Chief Minister Samrat Choudhary, among others. Sitharaman said, "Earlier, PM Modi used to tell me that the Union budget should be women-centric. But now he says the budget should be one that visualises women in leadership roles." The finance minister, who is on a two-day tour of Bihar, noted that the region, which was known for 'makhana' and Madhubani paintings, owed these to women's hard work. "We have brought in projects like 'Drone Didi'. Besides, cash assistance is being provided to women entrepreneurs through self-help groups. They are also being imparted with skills. Standing here, the birthplace o

Finmin starts phase 4 of RRB consolidation, number to fall from 43 to 28

In a bid to achieve operational efficiency and cost rationalisation, the Finance Ministry has initiated the fourth round of consolidation for Regional Rural Banks (RRBs) and the number of such banks is likely to come down to 28 from 43 at present. As per the roadmap prepared by the Finance Ministry, 15 RRBs operating in various states would be merged. Among states that will see consolidation of RRBs include Andhra Pradesh, which has the maximum number of RRBs (4), Uttar Pradesh and West Bengal (3 each), and Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan (2 each). In the case of Telangana, the amalgamation of RRBs will be subject to bifurcation of assets and liabilities of Andhra Pradesh Grameena Vikas Bank (APGVB) between APGVB and Telangana Grameena Bank. "Given the rural expansion of RRBs and agro-climatic or geographical ethos and in order to retain the USP of RRBs viz the closeness to communities, it is the felt need to embark on .

Increase share in ground-level agri credit: FM asks Northeast RRBs

Union Finance Minister Nirmala Sitharaman on Monday directed the Regional Rural Banks (RRBs) to increase their share in ground-level agriculture credit disbursement with a special focus on horticulture and allied agriculture activities like piggery, poultry, dairy and fisheries, officials said. Chairing a review meeting of the RRBs in the northeastern states at the civil secretariat here, Sitharaman urged the banks to put greater thrust on the identification of the right beneficiaries while sanctioning loans under various central schemes, they said. The meeting focused on business performance, upgrading digital technology services, and fostering business growth in allied agriculture and MSME clusters, they added. Among those present in the meeting were chairpersons of RRBs and sponsor banks, representatives of RBI, NABARD and SIDBI, and senior officers of all the northeastern states.

'One State, One RRB' policy gains momentum; may make debut in March 2025

Finance Minister Nirmala Sitharaman has urged RRBs to focus on improving digital services and supporting MSME growth

Finance ministry plans 'One State, One RRB' policy to boost efficiency

RRBs reported their highest-ever consolidated net profit of Rs 7,571 crore for FY24, with a gross non-performing assets (GNPA) ratio of 6.1 per cent - lowest in 10 years

Regional Rural Banks evince interest in going public at meet with FM

"Through the IPO, we aim to enhance our credibility as a prestigious organization to be part of and worth investing in," said a senior executive of an RRB

FM Nirmala Sitharaman seeks RBI help to clear RRB dues with states

The finance minister also directed RRBs to become more customer-friendly and use their local connections to further improve performance

FM Sitharaman urges regional rural banks to reduce high attrition rates

RRBs were established regionally and are oriented towards rural areas, with capital contributed by the Government of India, state governments, and sponsored banks under the RRB Act, 1976

FM asks RRBs to devise suitable products aligning with MSME clusters

Finance Minister Nirmala Sitharaman on Monday asked Regional Rural Banks (RRBs) to devise suitable products aligning with MSME clusters to increase banking penetration. During a review meeting with chairpersons of RRBs and CEOs of their sponsored bank, the finance minister emphasised active outreach by the RRB branches located in MSME clusters to ensure credit to small and micro enterprises in areas like textile, wooden furniture, leather, food processing, packing materials etc. that hold immense potential for increasing the loan portfolio. Sitharaman also asked sponsor banks and RRBs to recognise the challenges ahead and continue focusing on maintaining asset quality, expanding digital services, and ensuring robust corporate governance. During the meeting, Sitharaman underlined that all RRBs must have their own up-to-date technology stack to stay relevant and noted that digital banking services like mobile banking will be a boon for regions with relatively challenging physical ...

Regional Rural Banks losing ground to private banks amid tech challenges

The increasing presence of private sector banks has made the situation more challenging as RRBs fight the battle with outdated tools while other banks have advanced technology and basic infrastructure

FM Nirmala Sitharaman, PSB chiefs likely to talk NPAs and cybersecurity

Finance Minister Nirmala Sitharaman will hold the review meet on August 19