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The Central Government has formally dissolved several Regional Rural Banks (RRBs) that ceased operations following their amalgamation into newly constituted state-level entities, according to a notification issued by the Ministry of Finance. The dissolution has been carried out under Section 23D of
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FAQ :
The Ministry has dissolved old RRBs that have ceased operations after being merged into new state-level entities. This is a legal step to formally close the amalgamation process.
The dissolution is carried out under Section 23D of the Regional Rural Banks Act, 1976, which allows the Centre to dissolve an RRB once it has been merged and stopped functioning independently.
No, the dissolution is a procedural and legal step. It does not affect customers or employees, and all banking operations continue without disruption.
All assets, liabilities, rights, and obligations of the dissolved banks have already been transferred to the respective amalgamated RRBs.
The objective is to improve operational efficiency, reduce duplication, strengthen regional banking infrastructure, enhance capital adequacy, enable better technology adoption, and reduce costs.
The RRBs that were merged had ceased to carry on business from May 1, 2025.
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