The Ministry of Finance announced that starting from May 1, 2025, One state will have One regional rural bank. The government has launched a strategic initiative to unify all regional rural banks (RRBs) operating within a state into one unified institution. The state of Andhra Pradesh will start this initiative by merging Chaitanya Godavari Grameena Bank with Andhra Pragathi Grameena Bank and Saptagiri Grameena Bank and Andhra Pradesh Grameena Vikas Bank into a single RRB.
The Finance Ministry confirmed the approval of the merger after receiving input from NABARD and the Andhra Pradesh government and sponsor banks Union Bank of India and Canara Bank and Indian Bank and State Bank of India. The government implements this consolidation to serve public interest while promoting regional development and enhancing operational capabilities of participating banks.
After the merger the banks will stop their independent operations except for transactions needed to complete the amalgamation process. The newly formed RRB will acquire all the powers together with assets and responsibilities from the merged banks through a simplified structure to deliver better services to rural customers.
The reform represents a fundamental advancement to improve rural credit access and banking efficiency while speeding up service delivery throughout India’s rural regions.
