PwC India Report Highlights Benefits of ‘One State One RRB’ Policy
PwC India has released a report titled “Perspectives on ‘One State One RRB’: Building a resilient and efficient rural banking system.” The report explores the rationale, benefits, and roadmap for the Government of India’s strategic consolidation of Regional Rural Banks (RRBs) under the ‘One State One RRB’ policy.
Key Projections
The consolidation of RRBs is expected to have a significant impact on rural banking in India. Some key projections include:
- Total Business Growth: RRBs are projected to grow their total business (deposits + advances) to INR 28.12 lakh crore by FY30, up from INR 10.85 lakh crore in FY24—a CAGR of ~17%.
- Contribution to GDP: The share of RRB business in India’s GDP is expected to rise from ~3.7% in FY24 to ~5.2% by FY30.
Benefits of Consolidation
The report highlights several benefits of the consolidation, including:
- Cost Optimization: The consolidation will enable cost optimization, capital adequacy, and digital transformation.
- Deeper Credit Penetration: The policy aims to facilitate deeper credit penetration, particularly for MSMEs and the agriculture sector.
