One State, One RRB: The central government on Monday issued a gazetted notification announcing the merger of several regional rural banks (RRBs), which will be effective from May 1, 2025.
Issued under the powers conferred under Section 23A(1) of the Regional Rural Banks Act, 1976, the notification states that the concerned RRBs will merge to form one entity, which will inherit all their assets, rights, powers, obligations and duties.
The efficiency of RRBs will increase
The new structure aims to increase the efficiency of RRBs and reduce competition among the public sector banks that sponsor them. The move is part of the finance ministry’s “one state, one RRB” policy, first reported by Business Standard in September 2024.
RRBs will be merged in these states
The notification details the merger of several banks in different states with the aim of creating larger and more robust regional institutions. In Andhra Pradesh, Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank and Andhra Pradesh Grameena Vikas Bank will be merged to form Andhra Pradesh Grameena Bank. Its head office will be in Amravati and it will be sponsored by Union Bank of India. In Bihar, South Bihar Gramin Bank and North Bihar Gramin Bank will be merged to form Bihar Gramin Bank, whose head office will be in Patna and it will be sponsored by Punjab National Bank.
In Gujarat, Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank will be merged to form Gujarat Gramin Bank with its head office in Vadodara and sponsored by Bank of Baroda. Similarly, in Jammu and Kashmir, J&K Gramin Bank and Ellaquai Dehati Bank will be merged to form Jammu & Kashmir Gramin Bank with its head office in Jammu and sponsored by Jammu & Kashmir Bank Limited.
In Karnataka, Karnataka Vikas Gramin Bank and Karnataka Gramin Bank will be merged to form Karnataka Gramin Bank, whose head office will be in Ballari and it will be sponsored by Canara Bank. In Madhya Pradesh, Madhya Pradesh Gramin Bank and Madhyanchal Gramin Bank will be merged to form Madhya Pradesh Gramin Bank, whose head office will be in Indore and it will be sponsored by Bank of India.
In Maharashtra, Maharashtra Gramin Bank and Vidarbha Konkan Gramin Bank will be merged to form Maharashtra Gramin Bank with its head office at Chhatrapati Sambhajinagar and sponsored by Bank of Maharashtra. In Odisha, Odisha Gramya Bank and Utkal Gramin Bank will be merged to form Odisha Gramin Bank with its head office at Bhubaneswar and sponsored by Indian Overseas Bank.
In Rajasthan, Rajasthan Marudhara Gramin Bank and Baroda Rajasthan Regional Rural Bank will be merged to form Rajasthan Gramin Bank, whose head office will be in Jaipur and it will be sponsored by State Bank of India.
In Uttar Pradesh, Baroda UP Bank, Aryavart Bank and Prathama UP Gramin Bank will be merged to form Uttar Pradesh Gramin Bank, whose head office will be in Lucknow and it will be sponsored by Bank of Baroda.
Eventually, in West Bengal, Bangiya Gramin Vikas Bank, Paschim Banga Gramin Bank and Uttarbanga Regional Rural Bank will be merged to form West Bengal Gramin Bank with its head office in Kolkata and sponsored by Punjab National Bank.
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