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B_JOTHI RAMALINGAM
The Finance Ministry has kicked off a ‘One State-One RRB (Regional Rural Bank)’ drive in 11 states, including Andhra Pradesh, Karnataka Gujarat, West Bengal and Rajasthan, by amalgamating various RRBs into one. The scheme will come into effect from May 1.
“In exercise of the powers conferred by sub-section (1) of Section 23A of the Regional Rural Banks Act, 1976, the Central Government hereby provides for the amalgamation of the said Regional Rural Banks into a single Regional Rural Bank, which shall come into effect on and from the 1st day of May, 2025 with such constitution, property, powers, rights, interests, authorities and privileges; and with such liabilities, duties and obligation,” a notification by the Finance Ministry said.
The Government initiated structural consolidation of RRBs in FY2004-05, which resulted in a reduction in the number of RRBs from 196 in FY2004-05 to 43 by FY2020-21. With a view to derive the benefits of scale efficiency and cost rationalisation, based on the recommendations of an Expert Committee, the Government has continued with the process of further consolidation of RRBs on the principle of ‘One State–One RRB’. Post amalgamation, the consolidated RRBs are expected to have a better capital base and access to resources, improved technology adoption, enhanced area of operation and better visibility and branding.
According to a notification, in Andhra Pradesh, Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank, and Andhra Pradesh Grameena Vikas Bank will merge to form the Andhra Pradesh Grameena Bank, with its head office in Amravati and will be sponsored by Union Bank of India.
In Karnataka, Karnataka Vikas Grameena Bank and Karnataka Gramin Bank will merge into Karnataka Grameena Bank, with its head office in Ballari, sponsored by Canara Bank.
In Gujarat, Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank will merge to form Gujarat Gramin Bank, with its head office in Vadodara, sponsored by Bank of Baroda.
Similarly, Jammu & Kashmir will see the merging of J&K Grameen Bank and Ellaquai Dehati Bank into Jammu and Kashmir Grameen Bank, headquartered in Jammu, and sponsored by Jammu and Kashmir Bank Ltd.
In Bihar, Dakshin Bihar Gramin Bank and Uttar Bihar Gramin Bank will be combined into Bihar Gramin Bank, headquartered in Patna, sponsored by Punjab National Bank.
In Maharashtra, Maharashtra Gramin Bank and Vidarbha Konkan Gramin Bank will merge to form Maharashtra Gramin Bank, with its head office in Chhatrapati Sambhajinagar, sponsored by Bank of Maharashtra.
In Madhya Pradesh, Madhya Pradesh Gramin Bank and Madhyanchal Gramin Bank will combine to form Madhya Pradesh Gramin Bank, headquartered in Indore, and sponsored by Bank of India.
Odisha will see the amalgamation of Odisha Gramya Bank and Utkal Grameen Bank into Odisha Grameen Bank, headquartered in Bhubaneswar, sponsored by Indian Overseas Bank.
In Rajasthan, Rajasthan Marudhara Gramin Bank and Baroda Rajasthan Kshetriya Gramin Bank will merge to form Rajasthan Gramin Bank, headquartered in Jaipur, and sponsored by State Bank of India.
In Uttar Pradesh, Baroda UP Bank, Aryavart Bank, and Prathama UP Gramin Bank will be combined into Uttar Pradesh Gramin Bank, with its head office in Lucknow, and sponsored by Bank of Baroda.
Similarly, in West Bengal, Bangiya Gramin Vikash Bank, Paschim Banga Gramin Bank, and Uttarbanga Kshetriya Gramin Bank will be merged into West Bengal Gramin Bank, headquartered in Kolkata, and sponsored by Punjab National Bank.
Published on April 8, 2025
