Together, we can foster a more inclusive, efficient, and resilient rural banking ecosystem that empowers every Indian citizen:
FinTech BizNews Service
Mumbai, May 13, 2025: The Indian government’s ambitious One State, One RRB initiative has officially come into effect from 1 May 2025, merging 26 Regional Rural Banks (RRBs) into single entities across 11 states and one Union Territory.
Dilip Modi, Founder & CEO of Spice Money, has shared useful insights on this significant development:
"The government's 'One State, One RRB' initiative marks a pivotal advancement in fortifying India's rural banking infrastructure. By consolidating Regional Rural Banks (RRBs) into singular, robust entities per state, this reform aims to harness economies of scale, streamline operations, and enhance technological integration. Such a unified structure is poised to amplify RRBs' capacity to extend credit, particularly in agriculture, allied sectors, MSMEs, and government-sponsored schemes—areas crucial for rural economic vitality.
Notably, RRBs have expanded their footprint to over 22,000 branches across 700 districts, with more than 92% situated in rural and semi-urban locales. This extensive reach, combined with a consolidated net profit of rs7,148 crore in FY 2024-25 and a decade-low Gross Non-Performing Assets (GNPA) ratio of 5.3%, underscores their pivotal role in financial inclusion.
At Spice Money, we envision this consolidation as a catalyst for deeper collaboration between RRBs and fintech entities. By leveraging our digital platforms and last-mile connectivity through a network of 1.5 Mn adhikaris (Non - Bank BCs), we aim to complement RRBs' efforts in delivering tailored financial solutions to underserved populations. Together, we can foster a more inclusive, efficient, and resilient rural banking ecosystem that empowers every Indian citizen."
