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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM64998
Volume:
10 |
6 |
Jun 2026
Pages:
1-18
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Commerce
Utkal University
Department of Commerce
DDCE, Utkal University
The consolidation of Regional Rural Banks (RRBs) in Odisha is a significant reform exercise aimed at enhancing efficiency, sustainability, technology development, and service delivery in the rural banking sector. This study will explore issues surrounding the consolidated firms, their opportunities, and impacts of the consolidation on consumer satisfaction with regard to services offered by the RRBs in Odisha. This study will examine some of the key variables such as integration, employee adaptation, accessibility to e-banking, financial performance, customer relationship management, and service efficiency after consolidation. The study employed a descriptive and analytical research design with both primary and secondary sources of data used in the investigation. The primary data for the study was obtained through structured questionnaires and interviews administered to 420 consumers and 110 RRB employees from selected merged branches in Odisha. Percentage analysis, mean score analysis, correlation analysis, and regression methods were used to analyze data. From the findings, it can be seen that about 68% of customers improved on the level of access to banks, whereas 72% improved on the level of digital banking services after the merger of the institutions. The results of the survey indicate that 64% of respondents are satisfied with the quality of services received, especially transaction time, access to ATMs and online services. Some of the challenges that were encountered post-merger include overload of employees by 58%, disruption of service delivery by 47%, problems adapting technology in rural locations by 52%, and communication gaps between managers and customers by 41%. In terms of financial performance, there was an improvement by 21% in terms of productivity of branches after the merger process, while non-performing asset management performance improved by 17%. From this study, it is clear that mergers have brought significant changes to the operations and service delivery of RRBs. However, there are some infrastructural and managerial challenges that remain with the mergers, affecting rural banking in the state of Odisha in particular. Based on the study, it can be recommended to improve digital literacy and training of employees, as well as the infrastructure of rural banking and implement customer-focused strategies.
KEYWORDS
Consequently, the consolidation process of Regional Rural Banks (RRBs) in Odisha has been identified as a major banking reform measure focusing on enhancing efficiency, financial viability, quality of services, and financial inclusion in rural communities. First, the findings show that after the consolidation process, there was an improvement in terms of banking accessibility, modernization through information technology adoption, branch efficiency, and consumer satisfaction. More specifically, the study demonstrates that there has been notable enhancement regarding aspects like digital banking services, transaction efficiency, and financial inclusion through the consolidation of RRBs. Second, the current analysis provides evidence that RRBs have succeeded in their efforts towards enhancing support for agricultural financing, self-help groups funding, and rural enterprise activities. Third, the post-merger process of RRBs faces certain challenges, such as technological adoption problems, communication issues, overload of staff, rural infrastructural shortcomings, and operational disruptions due to the consolidation process. Finally, it is important to note that statistical analysis as well as consumer opinions have confirmed that dimensions of service quality, namely, reliability, responsiveness, and accessibility have been influencing consumers' satisfaction. In summary, it is safe to say that although the merger process had some challenges to overcome at its early stages, it has resulted in great opportunities in the development of rural banking services, promoting financial inclusion, and socio-economic development of the rural population in the region of Odisha. The outcomes of this research offer useful guidelines for future efforts toward successful rural banking initiatives in India.
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Publication Date
6/25/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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