AP’s Four Rural Banks to Merge from May 1

In a significant move aimed at streamlining rural banking services, the Central Government has approved the merger of four Regional Rural Banks (RRBs) in Andhra Pradesh into a single entity. The new bank, titled Andhra Pradesh Grameena Bank, will officially come into effect on May 1, 2025.

The four banks involved in the merger are:

Andhra Pragathi Grameena Bank (APGB) Andhra Pradesh Grameena Vikas Bank (APGVB) Chaitanya Godavari Grameena Bank (CGGB) Saptagiri Grameena Bank (SGB)

The newly formed Andhra Pradesh Grameena Bank will have its headquarters in Amaravati, with Union Bank of India serving as the sponsor bank.

No Changes for Customers – Yet

Bank officials have clarified that no immediate changes will occur for customers. Existing account numbers, IFSC codes, and branch addresses will remain the same. Chequebooks, passbooks, and ATM cards issued by the old banks will continue to be valid. Customers are encouraged to visit their nearest branch for further clarification or updates.

The Bigger Picture: One State, One RRB (Rural Regional Banks)

This merger is part of the Central Government’s “One State – One RRB” policy, a nationwide initiative aimed at strengthening rural banking. The policy is intended to:

Enhance efficiency Reduce operational costs Improve service quality in rural and semi-urban areas Pan-India Impact: RRB Count Reduced to 28

Andhra Pradesh is one of 11 states undergoing similar restructuring. Across the country, 15 RRBs will be merged, bringing the total number of RRBs down from 43 to 28.

Other major mergers include:

Uttar Pradesh: Baroda UP Bank, Aryavart Bank, and Pratham UP Gramin Bank → Uttar Pradesh Gramin Bank Bihar: South Bihar and North Bihar Gramin Banks → Bihar Gramin Bank West Bengal: Three rural banks → West Bengal Gramin Bank Gujarat, Jammu & Kashmir, Karnataka, Maharashtra, Odisha, Madhya Pradesh, and Rajasthan are also seeing RRB mergers

History of RRB Consolidation

This marks the fourth phase of RRB consolidation in India:

2006–2010: RRBs reduced from 196 to 82 2013–2015: Reduced to 56 Third phase: Down to 43 Now: Final number of RRBs to be 28

Each newly formed RRB will have an authorized capital of ₹2,000 crore, ensuring stronger financial backing and improved customer service.

What This Means for Rural India

The merger is expected to bring uniformity, better governance, and modern banking services to rural communities. Officials believe this structural change will pave the way for faster credit delivery, digital integration, and improved outreach.

Note: For more information, customers are advised to contact their local branch or visit the official website of the respective banks.