Govt Notifies Major Amalgamation of RRBs Across Four States and UT: Andhra, Bihar, Gujarat, Karnataka, and J&K [Read Notification]

The Ministry of Finance has issued four notifications, S.O. 1625(E) to S.O. 1629(E), dated April 5, 2025, announcing the amalgamation of multiple Regional Rural Banks ( RRBs ) in Andhra Pradesh, Bihar, Gujarat, Karnataka, and the Union Territory of Jammu & Kashmir.

The mergers that take effect from May 1, 2025, follow consultations with NABARD, the respective state governments, and sponsor banks, including Union Bank of India, Canara Bank, Punjab National Bank, State Bank of India, and The Jammu and Kashmir Bank Ltd.

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State-Wise Overview of RRB Mergers

In Andhra Pradesh, four RRBs are Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank, and Andhra Pradesh Grameena Vikas Bank have been unified under a new entity named Andhra Pradesh Grameena Bank, with its head office at Amravati and Union Bank of India as the sponsor bank. This consolidation is expected to improve credit flow, increase branch-level efficiency, and streamline services across rural Andhra Pradesh.

In Bihar, the merger of Dakshin Bihar Gramin Bank (sponsored by PNB) and Uttar Bihar Gramin Bank (sponsored by Central Bank of India) has resulted in the formation of Bihar Gramin Bank, headquartered at Patna. With a substantial combined capital infusion of Rs. 1,671.72 crore from the Centre, Rs. 501.51 crore from the state, and Rs. 1,170.20 crore from PNB, this merger is aimed at strengthening the banking infrastructure across rural Bihar and unifying operations under a single regional entity.

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Gujarat sees the coming together of Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank to form Gujarat Gramin Bank, with its headquarters in Vadodara. Bank of Baroda will act as the sponsor. The new bank inherits a robust financial base with central, state, and sponsor contributions amounting to Rs. 51.41 crore, Rs. 15.42 crore, and Rs. 35.99 crore, respectively.

In Jammu & Kashmir, J & K Grameen Bank (sponsored by J&K Bank) and Ellaquai Dehati Bank (sponsored by SBI) have been merged to form the Jammu and Kashmir Grameen Bank, headquartered in Jammu. The capital structure includes Rs. 494.18 crore from the Centre, Rs. 148.25 crore from the UT government, and Rs. 345.92 crore from the sponsor bank.

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Karnataka Vikas Grameena Bank and Karnataka Gramin Bank, both previously sponsored by Canara Bank, have been merged to form the new Karnataka Grameena Bank, headquartered in Ballari. The authorized capital is set at Rs. 2,000 crore, with the capital structure comprising Rs. 70.80 crore (Central Government), Rs. 21.24 crore (State Government), and Rs. 49.56 crore (Sponsor Bank). This merger is expected to improve financial outreach in Karnataka’s agrarian belts by unifying operations and digital platforms.

Employee and Customer Transition

Employees of the merging banks will continue under existing terms and conditions, with seniority preserved under NABARD’s 2013 guidelines. All existing accounts, savings, current, and fixed deposits will be seamlessly migrated into the newly formed banks, retaining balances and accrued interest. Legal obligations, contracts, and pending proceedings will also transfer without disruption.

To Read the full text of the Notification CLICK HERE

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