- By Kamakshi Bishnoi
- Thu, 01 May 2025 03:06 PM (IST)
- Source:JND
The Indian government has reduced the number of rural banks from 43 to 28, effective May 1. This decision impacts 11 states, including Bihar. South Bihar Gramin Bank and North Bihar Gramin Bank will formally merge to become Bihar Rural Bank, headquartered in Patna. This move is expected to enhance customer service.
Under the 'One State, One Rural Bank' policy, multiple rural banks in 11 states, including Andhra Pradesh, Uttar Pradesh, West Bengal, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan, will merge into single entities. This consolidation aims to strengthen and streamline rural banking services.
DN Trivedi, National General Secretary of the All India Rural Bank Officers' Association, noted that rural banks have faced restructuring challenges for two decades, with mergers reducing their numbers from 196 to the current 28. While signage will change, reflecting the new bank name alongside the old ones, customer accounts, loans, and other services will continue as usual.
Customers will receive new account numbers, checkbooks, and passbooks in due course. This merger also promises improved digital and customer service infrastructure without reducing the number of branches.