Andhra Pradesh RRB Merger, Check New Bank Name, Capital, Sponsor Bank, Head Office and All Details
Andhra Pradesh RRB Merger: The Central Government has announced the merger of four major Regional Rural Banks (RRBs or Grameen Banks) in Andhra Pradesh into a single bank named Andhra Pradesh Grameena Bank. This decision has been made after consultation with the National Bank for Agriculture and Rural Development (NABARD), the Government of Andhra Pradesh, and the sponsor banks — Union Bank of India, Canara Bank, Indian Bank, and State Bank of India. The objective of the merger is to improve banking services, promote rural development, and ensure better financial stability in the region.
Grameen Banks Involved in the Merger
The four RRBs that are being merged are:
- Chaitanya Godavari Grameena Bank
- Andhra Pragathi Grameena Bank
- Saptagiri Grameena Bank
- Andhra Pradesh Grameena Vikas Bank
The newly formed bank — Andhra Pradesh Grameena Bank — will be sponsored by Union Bank of India and will have its head office at Amaravati, the capital of Andhra Pradesh.
Capital Structure of the New Andhra Pradesh Grameen Bank
The authorised capital of Andhra Pradesh Grameena Bank will be ₹2,000 crore, divided into 200 crore fully paid-up shares of ₹10 each. The subscribed capital of the new bank will be equal to the combined subscribed capital of the four merged banks. The ownership structure will be as follows:
- Central Government: ₹61.21 crore
- State Government: ₹18.36 crore
- Sponsor Bank (Union Bank of India): ₹42.84 crore
- Share Capital Deposit: Nil
Cessation of Operations by Merged Gramin Banks
From May 1, 2025, the four merged banks will stop functioning individually. They will no longer accept deposits or make payments on their own. All such operations will now be managed by the new Andhra Pradesh Grameena Bank. However, any necessary activity related to the implementation of the merger may still be carried out during the transition period.
Andhra Pradesh RRB Merger: Transfer of Assets and Liabilities
All assets, properties, powers, and liabilities of the four banks will be transferred to the new Andhra Pradesh Grameena Bank. This includes both movable and immovable assets, reserve funds, investments, rights, and legal obligations. All contracts, agreements, and legal documents that were in the name of the old banks will now be considered valid under the name of the new bank. Ongoing court cases or legal proceedings involving the old banks will also continue under the name of the new bank.
Customer Accounts and Deposits
All types of customer accounts — such as savings, current, fixed deposits, and recurring deposits — will be automatically transferred to the new bank. Customers will not need to open new accounts. Their balances and interest will be safely credited to corresponding accounts in Andhra Pradesh Grameena Bank. In case there is any doubt about account entries, the bank has up to three months to verify and correct any issues, with approval from the sponsor bank.
Employees and Their Services
All employees working in the merged banks will continue their service in the new Andhra Pradesh Grameena Bank. Their salary and employment terms will remain the same. The seniority of officers and staff, whether recruited directly or promoted, will be decided based on existing NABARD guidelines. If there are any disputes, a special committee consisting of NABARD and the sponsor bank will resolve them.
Posting and Transfers
The new bank will have the authority to post or transfer employees anywhere within the newly defined area of operation, which now covers the entire region served by the four merged banks.
Area of Operation of Andhra Pradesh Grameena Bank
The new Andhra Pradesh Grameena Bank will operate in all districts previously covered by the four merged banks. This unified operational area is expected to improve efficiency and provide better rural banking services across the state.
Legal Framework
This entire process is carried out under the Regional Rural Banks Act, 1976. All provisions of the Act will now apply to the new Andhra Pradesh Grameena Bank as if it were established directly under the law.
