The primary objective behind the One State, One RRB Policy is to: |ForumIAS

[A] Privatize all Regional Rural Banks to attract foreign investment

[B] Create competition among multiple sponsor banks within each state

[C] Consolidate Regional Rural Banks to enhance efficiency and eliminate redundancy

[D] Merge RRBs with public sector commercial banks for urban expansion

Answer: C

Notes:

The One State, One RRB Policy, driven by the Department of Financial Services, aims to consolidate multiple RRBs within a state into a single entity, as recommended by the Vyas Committee (2005). This policy seeks to enhance operational efficiency, reduce duplication of efforts, and eliminate intra-state competition between RRBs sponsored by different banks.
By consolidating RRBs, the policy promotes better resource utilization, unified governance under one sponsor bank, standardized technology platforms, and improved financial inclusion in rural areas. It does not advocate privatization or merging RRBs with PSBs for urban markets.

Source: TOI

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