The government has taken the initiative of cumulating the regional rural banks (RRBs) state wise so as to make more effective utilization of their resources, said sources familiar with the process. RRBs are a major part of the financial inclusion drive of the government which is presently a priority for it.

The consolidation process would engulf as many as 63 RRBs. The number is expected to be brought down to 27.

Every sponsor bank of each of these RRBs has been asked to give a no-objection certificate (NOC) in this regard by the government.

The government has thus sent a note to the sponsor banks in this regard.
"Such amalgamation will help in optimising the use of modern technology," the letter said.