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One State One RRB: Telangana Sets Benchmark for Nationwide Amalgamation
Telangana has become the first state to implement the One State One RRB framework, merging Telangana Grameena Bank and APGVB’s Telangana operations. The move sets a benchmark for RRB consolidation nationwide.
Author: Saurav Kumar
Published: February 7, 2025
Telangana has become the first state in India to implement the One State One RRB framework, setting a precedent for Regional Rural Banks (RRBs) nationwide. The Ministry of Finance has officially notified the amalgamation of Telangana Grameena Bank and the Telangana operations of Andhra Pradesh Grameena Vikas Bank, effective January 1, 2025. According to Notification No. 2718(E) dated October 20, 2014, and subsequent directives, the consolidated entity will continue as Telangana Grameena Bank (TGB).
A Milestone Transition
Telangana Grameena Bank Chairperson Y. Sobha described the amalgamation as a “milestone moment” in the ongoing consolidation of RRBs. In an exclusive conversation with Kanal, she highlighted that, “Telangana is the first state to implement the Phase IV amalgamation plan outlined by the DFS, setting a benchmark for other RRBs awaiting consolidation.”
“The transition of services from the erstwhile Andhra Pradesh Grameena Vikas Bank to Telangana Grameena Bank has been seamless,” she said. “From name board changes to the issuance of new ATM cards and cheque books, every aspect of banking operations, including digital services, has been meticulously executed by our team.”
Telangana Grameena Bank Chairperson Y. Sobha assured that customer services would remain uniform across the state, with full access to digital banking products. Official documents indicate that TGB’s balance sheet has expanded significantly, rising from ₹30,000 crore to ₹70,000 crore following the amalgamation.
Government Directive Details
In the notification, the Ministry states, “Telangana Grameena Bank and part of Andhra Pradesh Grameena Vikas Bank (hereinafter referred to as the transferor Regional Rural Banks) are hereby amalgamated into a single Regional Rural Bank, which shall be called Telangana Grameena Bank with its head office at Hyderabad under the sponsorship of the State Bank of India.”
The directive further outlines that the transferee bank will have an authorised capital of Rs. 2000 crore, with the entire subscribed share capital of the transferor banks being transferred accordingly. All operational responsibilities—including asset, liability, and deposit management—will be consolidated under the new structure.
The government's decision is set to boost financial inclusion and streamline rural banking operations in Telangana, setting a benchmark for RRBs across India.