The branches of Andhra Pradesh Grameena Vikas Bank (APGVB) in Telangana will be merged with Telangana Grameena Bank with effect from Jan 1, 2025. 

The decision to merge APGVB branches with Hyderabad-based Telangana Grameena Bank was taken by the Department of Financial Services, Government of India in November this year. 

“To ensure smooth merger of the benches and systems, banking services across branches online platforms including ATM, Mobile Banking, Internet Banking and Customer Service points will not be available from December 28,2024 to January 1, 2025,’‘ Telangana Grameena Bank said in a notification.

The Bank will resume all operations from January 1, 2025. For emergency requirements, TGB is providing a facility to withdraw an amount of ₹5,000 by visiting the home branch on December 30-31. Non-home transactions will not be allowed during this period. 

The customers of APGVB branches in Telangana should visit their respective branches on or after January 1, 2025 for replacement of ATM cards and re-registration of mobile banking, Internet banking and UPI services, the notification said. 

ONE STATE- ONE RRB

The decision to merge APGVB branches in Telangana with TGB is in line with the Centre’s move to consolidate Regional Rural Banks (RRBs) under a policy of “One State, One RRB” to improve their efficiency and avoid undue competition among sponsoring public sector bank

RRBs were established in 1975 with an aim to enhance credit flow to the rural and agriculture sector as per Regional Rural Banks Act, 1976 to strengthen cooperative credit structure.

The Government of India, the concerned State Government and the public sector bank which is the sponsor of a RRB contribute 50 per cent, 15 per cent and 35 per cent to the share capital respectively.