The number of rural banks will decrease, Finance Ministry took a big step. The government wants to reduce the number of regional banks in the country. At present there are 43 rural banks in the country. The government wants to reduce this count to 28. For this, there is a plan to merge some regional rural banks. This will help banks reduce costs and increase capital base. These banks were established under the RRB Act 1976.
The number of regional rural banks will reduce from 43 to 28. 15 rural banks in different states will be merged. PTI, New Delhi. The Finance Ministry has started the fourth phase of merger of Regional Rural Banks (RRBs). With this, the number of such banks will reduce from the present 43 to 28. Under this, 15 regional rural banks will be merged in different states. RRBs will be merged in Andhra Pradesh (where there are maximum four RRBs), Uttar Pradesh and Bengal (three each) and Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh. , Maharashtra, Odisha and Rajasthan (two each).
In the case of Telangana, the merger of Regional Rural Banks will be subject to division of assets and liabilities of Andhra Pradesh Grameena Vikas Bank (APGVB) between APGVB and Telangana Gramin Bank. Also watch video: Department of Financial Services sends letters to heads of public sector banks The letter said, in order to achieve the goal of 'One State-One Regional Rural Bank', a need is felt to further consolidate the regional rural banks. The work is being done in consultation with NABARD. The statement said that further A blueprint has been prepared in consultation with NABARD for consolidation of RRBs, which will reduce the number of RRBs from 43 to 28.
The Department of Financial Services has sought comments from heads of sponsor banks of regional rural banks by November 20. Through three phases of merger, the number of such institutions reduced from 196 to 43 by 2020-21. These banks were established under the RRB Act, 1976, with the objective of providing loans to small farmers, agricultural laborers and artisans in rural areas. And other facilities were to be provided. The Center currently holds 50 per cent stake in RRBs, while 35 per cent and 15 per cent are held by the respective sponsor banks and state governments respectively.
Deposits of Rs 6.6 lakh crore: According to the data till March 31, 2024, there were total deposits of Rs 6.6 lakh crore with regional rural banks. At the same time, his advance was worth Rs 4.7 lakh crore. After the proposed merger, there will be only one regional rural bank in a state. In terms of assets, public sector banks still hold more than half of the banking sector in the country. The government has tried to merge banks to improve their functioning and reduce their dependence on the government for capital.
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