RRB Merger Latest News
RRB or Regional Rural Bank was started by the government to provide financial resources in rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural laborers and rural artisans. So that they could be benefited in their own village without the need to rush to cities for loans or deposits.
This banking structure is jointly owned by GoI, the concerned State Government and Sponsor Banks.There were 196 RRBs with a network of 16,000 branches. It was conceived to provide easy low interest loans to rural people and to provide them with other banking services.But soon most of banks were making losses.
In order to cut losses government chalked out the merger plan in order to reduce the running cost of the bank, to optimise the efficiency,for better use of the latest technology and other resources, as well as to expedite the implementation of the financial inclusion programme.
For this The department of financial services has asked RRBs operating in the same geographies to merge with a single sponsoring bank. Till 1st week of June 2013, there are 63 RRB’s in India. The aim is to have just eight RRBs in the country by 2030.
“Post amalgamation, there has been no disruption in delivery of services by the RRBs and merged entities have been discharging their functions properly,” the official added.
In Odisha, on 7th January 2013, three Regional Rural Banks (RRB) such as Nilachal Gramya Bank (NGB), Kalinga Gramya Bank (KGB) and Baitarani Gramya Bank (BGB) operating in coastal and northern districts of Odisha have merged into OGB or Odisha Gramin Bank. Two more RRBs in Odisha – Rushikulya Gramya Bank and Utkal Gramya Bank – have been amalgamated to form a new RRB – Utkal Grameen Bank with SBI.
