Govt To Merge Regional Rural Banks (Rrbs) – 56 To 36

After plans of merging Dena Bank – Vijaya Bank Bank – Baroda (BoB) too Andhra Bank – Oriental Bank of Commerce (OBC) – Punjab National Bank (PNB) every bit unmarried banking entities, the authorities is similar a shot eying on Regionnal Rural Banks (RRBs). It has already started consolidation of Regional Rural Banks too planning to convey downward their publish to 36 from the existing 56.
In this regard, the authorities has begun consultations amongst diverse states every bit they are 1 of the sponsors of the regional rural banks (RRBs) inward the country. Besides, sponsor banks are likewise preparing route map for the amalgamation of RRBs inside a state.

The proposed consolidation of RRBs too bringing downward their publish from the existing 56 to 36 volition Pb to amend scale-efficiency, higher productivity, robust fiscal wellness of such banks, improved fiscal inclusion too greater credit menstruation to rural areas, the govt said.

This deed volition likewise enable RRBs to minimise their overhead expenses, optimise the operate of technology, elevate the upper-case missive of the alphabet base of operations too expanse of operation.

Important Points to Note About Regional Rural Banks (RRBs) :

Regional Rural Banks (RRBs) banks were formed nether the RRB Act, 1976, amongst an objective to furnish credit too other facilities to small-scale farmers, agricultural labourers too artisans inward rural areas.
The Act was amended inward 2015 whereby such banks were permitted to elevate upper-case missive of the alphabet from sources other than the Centre, states too sponsor banks. Currently, the Centre holds 50 per cent in RRBs, piece 35 per cent too xv per cent are amongst the concerned sponsor banks too province governments, respectively. In lodge to improve the fiscal wellness of RRBs, the authorities initiated consolidation of RRBs inward a phased mode inward 2005.

The publish of RRBs came downward to 133 inward 2006 from 196 at the halt of March 2005. It farther came downward to 105 too later to 82 at the halt of March 2012. Further consolidation brought downward publish of such banks to 56. Now 1 time again the govt is going to brand them 36.

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