New banking reform i.e. ‘One State, One RRB’ policy officially enforced on on May 1, 2025. Total 26 RRBs merged in 11 states and 1 Union Territory. Total RRBs reduced from 43 to 28. Mergers were carried out to consolidate multiple RRBs operating in the same state into a single entity. As a result, 15 RRBs were merged, reducing the total from 43 separate institutions to 28.
RRBs were established in 1975 to develop the rural economy. These banks focus area were agriculture, trade, commerce, industry and other productive activities. Banks aims to support especially those who needed it most like small farmers, laborers, artisans, and budding rural entrepreneurs. RRBs goal is
to promote sustainable agricultural and economic activities in rural regions.