Amalgamation of RRBs: NABARD’s Action Plan For One State One RRB

In a major push for banking consolidation in rural India, National Bank for Agriculture and Rural Development (NABARD) has laid down an action plan to implement the Phase IV of Amalgamation of Regional Rural Banks (RRBs) under the ‘One State One RRB’ policy. 

As per a communication dated April 8, 2025, issued by NABARD’s Chief General Manager, amalgamation will come into effect from May 1, 2025. The consolidation will be based on the audited financial statements of RRBs as of April 30, 2025.

Image: NABARD directive detailing action plan for amalgamation of RRBs

State-Level Monitoring Committees to Oversee Transition

To ensure smooth implementation at the state level, the government has directed the formation of State-Level Monitoring Committees (SLMCs) in each of the 10 states and 1 union territory to undergo amalgamation. 

Composition:

• NABARD Regional Chief General Manager (Chairman)
  
   
• General Manager of Sponsor Banks
  
   
• Chairpersons of the merging RRBs
  
   
• Core Banking Solution (CBS) Partners
  
   
• NABARD Regional Office General Manager (Convenor)

Responsibilities:

• Prepare a time-bound State Action Plan
  
   
• Frame Standard Operating Procedures (SOPs) for CBS migration and business continuity
  
   
• Develop a data migration plan with a three to six-month window
  
   
• Resolve Human Resources and Industrial Relations (HR/IR) issues
  
   
• Coordinate actions among all stakeholders
  
   
• Minimize system downtime and ensure seamless service
  
   
• Develop a media and public communication strategy

At the central level, a National-Level Project Monitoring Unit (NLPMU) has been constituted to provide policy direction and coordinate implementation across the country. 

Composition:

• NABARD Deputy Managing Director (Chairman)
  
   
• Executive Directors/Chief General Managers of Sponsor Banks
  
   
• RRB Consultant from Department of Financial Services (DFS)
  
   
• NABARD CGM, Institutional Development Department (Convenor)
   

Responsibilities:

• Address implementation bottlenecks
  
   
• Issue standard guidelines for SLMCs
  
   
• Monitor progress and review action plans submitted by the states

The NLPMU will monitor overall progress, review action plans submitted by SLMCs, and intervene to resolve bottlenecks. It will also issue standard operating guidelines to ensure consistency and uniformity in the amalgamation process nationwide.

Key Deadlines For Action

Directions to Sponsor Banks

The Department of Financial Services (DFS) directed respective sponsor banks to set up an Amalgamation Resource Office (ARO) or Project Monitoring Unit (PMU) to drive the amalgamation process at ground level. NABARD directive gives a clear roadmap for implementation of the One State One RRB process.