The Reserve Bank of India is going to take an important step to improve banking services and improve operational costs. If reports are to be believed, the Modi government has announced the merger of 21 Regional Rural Banks (RRBs). This merger will reduce the total number of RRBs in India from 43 to 28 by streamlining the banking system. The government aims to increase banking efficiency, especially in rural areas, and provide more accessible, cost-effective services to communities.

The central government will merge 21 RRBs, reducing the number of rural banks from 43 to 28. This merger will transfer customer accounts from the merged banks to the remaining banks, making integration easier.

The Finance Ministry has outlined the states where the merger will take place. These include:

Andhra Pradesh (4 RRBs)

Uttar Pradesh and West Bengal (3 RRBs each)

Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan (2 RRBs each)

In Telangana, the RRBs will be merged after the assets and liabilities of Andhra Pradesh Grameena Vikas Bank (APGVB) are divided between Telangana Grameena Bank and APGVB.

The Finance Ministry has introduced the "One State, One RRB" policy, aimed at improving efficiency and reducing costs. The move will simplify the banking system in rural areas and ensure better service delivery to customers.