➡ Govt is planning Merge Regional Rural Banks (RRBs) – 56 to 36
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▪️ After plans of merging Dena Bank – Vijaya Bank Bank – Baroda (BoB) and Andhra Bank – Oriental Bank of Commerce (OBC) – Punjab National Bank (PNB) as single banking entities, the government is now eying on Regionnal Rural Banks (RRBs). It has already started consolidation of Regional Rural Banks and planning to bring down their number to 36 from the existing 56.
▪️ In this regard, the government has begun consultations with various states as they are one of the sponsors of the regional rural banks (RRBs) in the country. Besides, sponsor banks are also preparing road map for the amalgamation of RRBs within a state.
▪️ The proposed consolidation of RRBs and bringing down their number from the existing 56 to 36 will lead to better scale-efficiency, higher productivity, robust financial health of such banks, improved financial inclusion and greater credit flow to rural areas, the govt said.
▪️ This move will also enable RRBs to minimise their overhead expenses, optimize the use of technology, enhance the capital base and area of operation.