Center notified the merger of 26 local rural banks

New -Delhi, April 8 (IANS). The Finance Ministry of Finance has issued a notice on the merger of 26 ‘Local Rural Banks’ (RRB) on the principles of ‘one state, one RRB’ as part of the fourth phase of exercise issued to improve efficiency. This information was given in an official statement released on Tuesday. The Ministry of Finance launched a merger scheme in November 2024 to consult the stakeholders. The statement said that 26 ‘RRBS’ was consulted with the stakeholders in ten states and one trade union area, the primary attention of the effectiveness of the scale and the cost is appropriate. Currently, 43 RRBs work in 26 states and 2 trade union areas. After the merger, there will be 28 RRBs in 26 states and 2 union areas, which will have more than 22,000 branches in 700 districts. The statement said that their most important operating area is rural area, with about 92 percent of branches in rural and semi-urban areas. This is the fourth phase of merger. The official statement said that the number of RRBs from 196 to 82 during the first phase of FY 2006 to FY 2010 was reduced to 82. In the second phase, the number of RRB was reduced from 82 to 56 during FY 2015 to FY 2015. In the third phase, the number of RRB was reduced from 56 to 43 during FY 2019 to FY 2021. 11 States, including Andhra Pradesh, Karnataka, Gujarat, Western Bengal and Rajasthan. The scheme will apply from 1 May. Regional rural banks in India play an important role in promoting rural economic development by providing financial services, especially loans and other facilities to small and marginal farmers, agricultural laborers, artisans and small entrepreneurs in underprivileged rural areas. -Ians SKT/ABM shares this story -tags