Central Government notifies amalgamation of Gramin Bank of Aryavart and Allahabad UP Gramin Bank

S.O. 449(E)—Whereas the Central Government, after consultation with the National Bank for Agriculture and Rural Development (NABARD), Government of Uttar Pradesh and the Bank of India and Allahabad Bank, being the Sponsor Banks of Gramin Bank of Aryavart and Allahabad UP Gramin Bank, is of the opinion that it is necessary in the public interest and in the interest of the development of the area served by the aforesaid Regional Rural Banks and also in the interest of the said Regional Rural Banks themselves, that the said Regional Rural Banks should be amalgamated into a single Regional Rural Bank;

Now, therefore, in the exercise of the powers conferred by sub-section (1) of Section 23A of the Regional Rural Banks Act, 1976 (21 of 1976) (hereinafter referred to as “the Act”), the Central Government hereby provides for the amalgamation of the said Regional Rural Banks into a single Regional Rural Bank which shall come into effect on and from the first day of April, 2019 (hereinafter referred to as the “effective date of amalgamation”) with such constitution, property, powers, rights, interests, authorities and privileges; and with such liabilities, duties and obligations as specified hereunder:—

1. Gramin Bank of Aryavart and Allahabad UP Gramin Bank (hereinafter referred to as “the transferor Regional Rural Banks”) sponsored by the Bank of India and Allahabad Bank in the State of Uttar Pradesh are hereby amalgamated into a single Regional Rural Bank which shall be called as Aryavart Bank (hereinafter referred to as “the transferee Regional Rural Bank”) with its head office at Lucknow under the sponsorship of Bank of India.

2. The authorized capital of the transferee Regional Rural Bank shall be rupees two thousand crores divided into two hundred crore number of fully paid shares of rupees ten each. The subscribed share capital of the transferee Regional Rural Bank shall be equal to the subscribed share capital of transferor Regional Rural Banks and, therefore, the entire subscribed share capital of the transferor Regional Rural Banks shall be deemed to have been transferred to and shall be deemed as subscribed share capital of the transferee Regional Rural Bank.

Detailed Notification – Notification

Ministry of Finance