New Delhi: One state-one regional rural bank (RRB) will become a reality beginning next month as the finance ministry has issued notification for consolidation of 15 Regional Rural Banks across 11 states for achieving better operational efficiency and cost rationalisation. With this fourth round of consolidation of RRBs, the number would reduce to 28 from the existing 43. The effective date for amalgamation has been fixed May 1, according to a government notification.As per the gazette notification, RRBs in 11 states such as Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan, are to be merged into one entity, respectively, for each of these to realise the goal of ‘one state-one RRB. “In line with the powers granted under Section 23A(1) of the Regional Rural Banks Act, 1976, these RRBs will merge into a single entity in the public interest and in the interest of the development of the area served by these entities…” it said.However, the notification reads, “The effective date for amalgamation has been fixed May 1 as per the gazette notification dated April 5, 2026. All the entities would have authorised capital of Rs 2,000 crore. As a precursor to consolidation, the capital infusion was done in these RRBs.For example, it said, Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank and Andhra Pradesh Grameena Vikas Bank sponsored by Union Bank of India, Canara Bank, Indian Bank and State Bank of India amalgamated into a single Regional Rural Bank called as Andhra Pradesh Grameena Bank. “The head office of the new entity would be at Amravati and the RRB would be under sponsorship of Union Bank of India,” it added.In case of Uttar Pradesh and West Bengal, 3 RRBs to be merged into one in each of these states. “As far as Uttar Pradesh is concerned, Baroda U.P. Bank, Aryavart Bank and Prathama U.P. Gramin Bank sponsored by the Bank of Baroda, Bank of India and Punjab National Bank amalgamated into Uttar Pradesh Gramin Bank with its head office at Lucknow under the sponsorship of Bank of Baroda,” it said.Likewise, for West Bengal, Bangiya Gramin Vikash, Paschim Banga Gramin Bank and Uttarbanga Kshetriya Gramin Bank sponsored by the Punjab National Bank, UCO Bank and Central Bank of India to be amalgamated into West Bengal Gramin Bank with its head office in the state capital under sponsorship of Punjab National Bank.In eight states — Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan, two RRBs would be merged into one. “For instance, Dakshin Bihar Gramin Bank and Uttar Bihar Gramin Bank will be merged into an entity called Bihar Gramin Bank with its head office at Patna under the sponsorship of Punjab National Bank,” the notification said.With regard to Gujarat, it said, Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank hereby amalgamated into a single Regional Rural Bank, which shall be called as Gujarat Gramin Bank with its head office at Vadodara under the sponsorship of Bank of Baroda. “For the Union Territory of Jammu and Kashmir, J & K Grameen Bank and Ellaquai Dehati Bank sponsored by J&K Bank and State Bank of India to be merged into a single RRB called as Jammu and Kashmir Grameen Bank with its head office at Jammu under the sponsorship of J&K Bank,” it added.
Source link
