Govt Notifies Major Amalgamation of RRBs Across 6 States: MP, Maharashtra, Odisha, Rajasthan, UP, and WB [Read Notification]

The Government of India has notified the amalgamation of 15 Regional Rural Banks (RRBs) across six Indian states into five unified entities, with effect from May 1, 2025. The decision taken after extensive consultations with NABARD, state governments, and respective sponsor banks is aimed at enhancing financial inclusion, improving operational efficiency, and enabling stronger credit support in rural areas.

The following mergers have been announced under Notifications S.O. 1630(E) to S.O. 1635(E), dated April 5, 2025:

State	Merged Banks	New Bank	Sponsor Bank	Head Office
Madhya Pradesh	Madhya Pradesh Gramin Bank, Madhyanchal Gramin Bank	Madhya Pradesh Gramin Bank	Bank of India	Indore
Maharashtra	Maharashtra Gramin Bank, Vidharbha Konkan Gramin Bank	Maharashtra Gramin Bank	Bank of Maharashtra	Chhatrapati Sambhajinagar
Odisha	Odisha Gramya Bank, Utkal Grameen Bank	Odisha Grameen Bank	Indian Overseas Bank	Bhubaneswar
Rajasthan	Rajasthan Marudhara Gramin Bank, Baroda Rajasthan Kshetriya Gramin Bank	Rajasthan Gramin Bank	State Bank of India	Jaipur
Uttar Pradesh	Baroda U.P. Bank, Aryavart Bank, Prathama U.P. Gramin Bank	Uttar Pradesh Gramin Bank	Bank of Baroda	Lucknow
West Bengal	Bangiya Gramin Vikash Bank, Paschim Banga Gramin Bank, Uttarbanga Kshetriya Gramin Bank	West Bengal Gramin Bank	Punjab National Bank	Kolkata

Capital Structure & Legal Provisions

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Each of the newly formed Regional Rural Banks will have an authorized capital of Rs. 2,000 crore, divided into fully paid-up shares. The subscribed capital of these banks has been carried over from the respective transferor banks. The shareholding is distributed among the Central Government, the respective State Governments, and the designated Sponsor Banks. There is no requirement for any share capital deposit in this transition. Legally, each new RRB will be treated as if it were established afresh under Section 3(1) of the Regional Rural Banks Act, 1976, which continues to apply in full to all the transferee banks.

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Employees and Customers

All employees of the merged banks, excluding those not classified as workmen under the Industrial Disputes Act, 1947, will retain their existing pay scales and service conditions post-amalgamation. The seniority of officers and employees will be maintained according to NABARD’s guidelines issued in 2013. For customers, the transition will be seamless: all deposit accounts, including savings, current, and fixed deposits, will automatically migrate to the new bank structure with full balances and interest preserved. Any ongoing legal cases involving the previous banks will continue under the names of the new entities without disruption.

Wider Impact

The amalgamation aligns closely with the objectives of Digital India and financial inclusion. It is expected to foster unified governance structures, enhance the delivery of credit to farmers, self-help groups (SHGs), and micro, small, and medium enterprises (MSMEs), and optimize operational costs. The consolidation expands the rural banking network's service footprint, ensuring better access to formal banking in previously underserved regions.

To Read the full text of the Notification CLICK HERE

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