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Andhra Pradesh Grameena Vikas Bank to Merge with Telangana Grameena Bank from 1st January 2025


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Hyderabad: In a major restructuring move, 493 branches of Andhra Pradesh Grameena Vikas Bank (APGVB) in Telangana will merge with Telangana Grameena Bank (TGB) starting January 1, 2025. To facilitate the smooth transition of branches and banking systems, TGB has announced a temporary suspension of banking services from December 28 to 31.

Andhra Pradesh Grameena Vikas Bank and Telangana Grameena Bank are both sponsored by State Bank of India. The Government had earlier launched one State on RRB policy. As per the policy, both the banks will merged and will now be sponsored by SBI. The decision is a part of the consolidation and strengthening exercise of the banking sector particularly Regional Rural Banks (RRBs) and under the Union government’s ‘One State – One RRB’.

Post-merger, the TGB will have a network of 928 branches with a turnover of around Rs 70,000 crore, making it one of the biggest rural banks in the country. TGB chairperson Y Sobha said that the merger will take place as per the orders issued by the Union government in November. At present, APGVB operates a total of 771 branches in Andhra Pradesh and Telangana — 493 in Telangana and 278 in Andhra Pradesh. These 278 branches will continue to operate in Andhra Pradesh as APGVB.

TGB has at present a turnover of Rs 30,000 crore with 435 branches working in 18 districts. Post-merger, TGB will have a branch network of 928 branches with turnover around Rs 70,000 crore and will be one of the biggest RRBs in the country.

Banking Services Disruption

During the merger period, services such as ATM withdrawals, UPI transactions, mobile banking, internet banking, and customer service points will be unavailable. However, for emergencies, customers can withdraw up to ₹5,000 by visiting their respective home branches on December 30 and 31. Non-home branch transactions will not be permitted during this time.

  • For replacement of debit cards, customers can visit the bank ranches after January 1
  • For mobile banking users, “TGB Mobile Banking” app should be downloaded
  • Cheques, DDs of APGVB issued up to December 31, 2024, will be accepted till March 315
  • Customers will get new personalised chequebooks for use from January 1
  • For clarifications, customers can log on to www.tgbhyd.in or contact the nearest branch

Customer Advisory Post-Merger

Post-merger, customers of the former APGVB branches in Telangana will need to visit their respective branches to replace ATM cards and re-register for mobile banking, internet banking, and UPI services.

Central Government’s Reorganisation Effort

The merger is part of the Central government’s ongoing initiative to reorganise the operational areas and realign the assets and liabilities of APGVB following the bifurcation of Andhra Pradesh and the formation of Telangana. This aligns with the government’s “One State-One Regional Rural Bank (RRB)” policy aimed at enhancing efficiency and reducing costs through consolidation.

History and Goals of RRBs

Established in 1975 to support rural development, RRBs have undergone several phases of consolidation. The first phase began in 2004-05, reducing the number of RRBs from 196 to 43 by 2021. A new roadmap, prepared with NABARD’s consultation, seeks to further reduce the number of RRBs to 28 nationwide.

In a communication to sponsor banks, the Union Finance Ministry highlighted the benefits of these mergers, including scale efficiency and cost rationalisation. The ministry has issued a state-wise list of RRBs proposed for amalgamation and requested feedback from sponsor banks.

APGVB Operations Post-Merger

Following the merger, APGVB will continue operating 278 branches in Andhra Pradesh under its existing name. A working group set up by the Centre has recommended that APGVB employees be given the option to either remain with APGVB or shift to TGB based on their preferences.

This merger marks a significant step in the ongoing efforts to streamline and strengthen the regional rural banking sector in India.

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