New Delhi, April 8 -- The Department of Financial Services (DFS) has notified the amalgamation of 26 Regional Rural banks (RRBs) on the principles of 'One State One RRB', the Ministry of Finance said in a statement Tuesday.

This is the fourth phase of the amalgamation of RRBs.

Considering the improvement in the efficiency of the RRBs due to amalgamations in the past, the Ministry of Finance rolled out an amalgamation plan in November 2024 for consultation with stakeholders.

After consultation with stakeholders, amalgamation of 26 RRBs in 10 States and 1 UT have been carried out with primary focus on improvement in scale efficiency and cost rationalization.

At present, 43 RRBs are functioning in 26 States and 2 UTs.

Post amalgamation,...