Bank Merger: A lot is going to change from next month. The number of banks is going to decrease. 15 banks are going to be merged. 15 banks from 11 states will be merged. Actually, the government has decided to implement the 'one state-one RRB' policy from May 1, under which there will be only one rural bank in a state. That is, a large number of rural banks are going to be merged.
From May 1, there will be only one Regional Rural Bank (RRB) in every state of the country. To implement this order, the Finance Ministry has issued a notification regarding the merger of 15 Regional Rural Banks in 11 states. These banks will be merged on the orders of the Finance Ministry. This will be the fourth phase of the merger of Regional Rural Banks, after completion of which the current number of RRBs in the country will decrease from 43 to 28.
What is 'One State-One RRB' policy
The government has implemented the One Rural Bank in One State policy from May 1. Under this, regional rural banks in 11 states of the country - Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu and Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan will be merged into one unit. In this way, the goal of 'one state-one RRB' will be realized.
Who will merge with whom
These RRBs will be integrated into a single entity under powers conferred under Section 23A(1) of the Regional Rural Banks Act, 1976. Chaitanya Godavari Gramin Bank, Andhra Pragathi Gramin Bank, Saptagiri Gramin Bank and Andhra Pradesh Gramin Vikas Bank sponsored by Union Bank of India, Canara Bank, Indian Bank and State Bank of India will be merged to form Andhra Pradesh Gramin Bank.
Baroda U.P. Bank, Aryavarta Bank and Prathama U.P. Gramin Bank in Uttar Pradesh will be merged into a single entity called Uttar Pradesh Gramin Bank, headquartered in Lucknow under the sponsorship of Bank of Baroda.
Bangiya Gramin Vikas, West Bengal Gramin Bank and Uttarbang Regional Rural Bank operating in West Bengal will be merged with West Bengal Gramin Bank.
South Bihar Gramin Bank and North Bihar Gramin Bank will be merged to form Bihar Gramin Bank whose headquarters will be in Patna.
In Gujarat, Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank will be merged to form Gujarat Gramin Bank.
According to the notification, all regional rural banks will have an authorized capital of Rs 2,000 crore. The government has also infused capital in these regional rural banks before the merger. In the financial year 2021-22, the Center had decided to infuse Rs 5,445 crore in RRBs as its share over a period of two years. In the financial year 2023-24, the performance of RRBs reached historic highs on many parameters. RRBs recorded the highest ever consolidated net profit of Rs 7,571 crore that year and their consolidated capital adequacy ratio was at an all-time high of 14.2 per cent.
PC:Zeenews
