Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-04022025-260760
EXTRAORDINARY
PART II-Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 596]
NEW DELHI, TUESDAY, FEBRUARY 4, 2025/MAGHA 15, 1946
MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 3rd February, 2025
S.O. 600(E). Whereas consequent upon the bifurcation of the state of Andhra Pradesh as per the Andhra
Pradesh State Reorganisation Act, 2014 (6 of 2014), the Central Government in exercise of the powers conferred by
sub-section (1) of section 4 of the Regional Rural Banks Act, 1976 (21 of 1976) notified reorganisation of area of
operation of Andhra Pradesh Grameena Vikas Bank and Telangana Grameena Bank vide notification number S.O. 2718
(E) dated the 20th October, 2014 and S.O. 2719 (E) dated the 20th October, 2014.
Whereas to give effect to the above said notifications, the Government vide letter No. 15/15/2015(E)-RRB
dated the 26th September, 2022 constituted a Working Group for giving effect to the bifurcation of assets and liabilities
of Andhra Pradesh Grameena Vikas Bank, between the States of Andhra Pradesh and Telangana.
Whereas the Working Group submitted its report vide National Bank for Agriculture and Rural Development's
letter number NB.HOIDD.RRB Recap/1347/RRB-316 (Reorg WG)/2022-23 dated the 28th March, 2023. Whereas the
Scheme was circulated to the stakeholders including the State Governments of Andhra Pradesh and Telangana, National
Bank for Agriculture and Rural Development and State Bank of India being the Sponsor Bank of both Andhra Pradesh
Grameena Vikas Bank and Telangana Grameena Bank.
Whereas based on consultation with the stakeholders as referred to above, the Government has approved vide
letter F.No. 15/15/2015(E)-RRB dated the 13th November, 2024 the scheme for bifurcation of assets and liabilities of
Andhra Pradesh Grameena Vikas Bank and requested National Bank for Agriculture and Rural Development to
complete the whole process within the Calendar year 2024 and becomes effective from the 1st January, 2025 as per the
recommendations of the Working Group.
Now, Therefore, in 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 Telangana Grameena Bank and part of Andhra Pradesh Grameena Vikas Bank operating in the State
of Telangana pursuant to Notification No.2718(E) dated the 20th October, 2014 into a single Regional Rural Bank,
which shall come into effect on and from the 1st day of January, 2025 (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. Telangana Grameena Bank and part of Andhra Pradesh Grameena Vikas Bank (hereinafter referred to as “the
transferor Regional Rural Bank") sponsored by State Bank of India in the State of Telangana is hereby amalgamated
into single Regional Rural Bank, which shall be called as Telangana Grameena Bank (hereinafter referred to as "the
transferee Regional Rural Bank”) with its head office at Hyderabad under the sponsorship of State Bank of India.
2. The authorised capital of the transferee Regional Rural Bank shall be rupees two thousand crore 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.
3. The entire share capital and share capital deposit of the transferee Regional Rural Bank shall be as under:-
+-----+---------------------+----------------------------------------------------------+
| | Share Capital | |
+=====+=====================+==========================================================+
| 1 | | |
+-----+---------------------+----------------------------------------------------------+
| (a) | Central Government | Rupees Twenty eight crore sixty four lakh thirty four thousand |
| | | seven hundred ninety only. |
+-----+---------------------+----------------------------------------------------------+
| (b) | State Government | Rupees Eight crore fifty nine lakh thirty thousand three hundred |
| | | only. |
+-----+---------------------+----------------------------------------------------------+
| (c) | Sponsor Bank | Rupees Twenty crore five lakh four thousand three hundred |
| | | fifty only. |
+-----+---------------------+----------------------------------------------------------+
| 2 | Share Capital Deposit | Rupee Zero Only. |
+-----+---------------------+----------------------------------------------------------+
4. From the effective date of amalgamation, the transferor Regional Rural Banks viz. Telangana Grameena Bank
and part of Andhra Pradesh Grameena Vikas Bank operating in the State of Telangana shall cease to carry on the
business including that of making any payment to any depositors or discharge any liability or obligation to the creditors
except to the extent as may be necessary for implementation of the provisions of the amalgamation as per this
notification.
5. From the effective date of amalgamation, the undertakings of the transferor Regional Rural Banks shall be
transferred to and shall vest in the transferee Regional Rural Bank;
(a) the undertakings of the transferor Regional Rural Banks shall include all assets, rights, powers, authorities and
privileges and all property movable and immovable, cash balance, reserve funds, investments and all other rights
and interest in or arising out of such property, as are immediately before the commencement of this notification,
in the ownership, possession, power or control of the transferor Regional Rural Banks whether within or outside
India and all books of accounts, registers, records and all other documents of whatever nature relating thereto and
shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the
transferor Regional Rural Banks;
(b) all contracts, deeds, bonds, agreements, guarantees, powers of attorney, grants of legal representation and other
instruments of whatsoever nature subsisting or having effect immediately before the commencement of this
notification and to which the transferor Regional Rural Banks are a party or which are in favour of the transferor
Regional Rural Banks shall be in full force and effect against or in favour of the transferee Regional Rural Bank
and may be enforced or acted upon as fully and effectively as if in the place of the transferor Regional Rural
Banks, the transferee Regional Rural Bank has been a party thereto or as if they had been issued in favour of the
transferee Regional Rural Bank;
(c) if, on the effective date of amalgamation, any suit, appeal or other proceedings of whatsoever nature in relation to
any business of the transferor Regional Rural Banks are pending by, or against to, the transferor Regional Rural
Banks, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer
of the undertaking of the transferor Regional Rural Banks or of anything contained in this notification but the suit,
appeal or other proceedings may be continued, prosecuted and enforced by, or against, the transferee Regional
Rural Bank;
(d) any reference to the transferor Regional Rural Banks in any agreement, contract, conveyance, assurance, power of
attorney or any other document of whatsoever nature shall be deemed to be a reference to the transferee Regional
Rural Bank and the rights and obligations of the transferor Regional Rural Banks shall be deemed to be the rights
and obligations of the transferee Regional Rural Bank.
6. (a) In respect of every savings banks account or current account or any other deposit account including a fixed
deposit, cash certificate, monthly deposit, deposit payable at call or short notice or any other deposits by whatever
name called with the transferor Regional Rural Bank, the transferee Regional Rural Bank shall open with itself on the
effective date of amalgamation a corresponding and similar account in the name of the respective holder(s) thereof
crediting thereto full amount including interest to the extent payable:
Provided that where the transferee Regional Rural Bank entertains a reasonable doubt about the correctness
of the entries made in any particular account, it may with the approval of the Sponsor Bank withhold the credit to be
made in that account for a period not exceeding three months from the effective date of amalgamation within which
the transferee Regional Rural Bank shall ascertain the correct balance in such account.
(b) In respect of every other liability, notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of
1882) or the Registration Act, 1908 (16 of 1908), this notification shall be sufficient conveyance, in accordance with
the provisions of this notification, of the business, properties, assets and liabilities, rights, interests, powers, privileges,
benefits and obligations of whatever nature of the transferor Regional Rural Banks to the transferee Regional Rural
Bank.
7. (a) The operational aspects including issues relating to human resources shall be decided as per Government's
instructions to National Bank for Agriculture and Rural Development vide para 2(v) of DFS letter No.
F.No.15/15/2015(E)-RRB dated the13th November, 2024.
(b) For overseeing implementation of the Working Group recommendations and removing difficulties including
disproportionate option by the employees towards any particular Regional Rural Bank, if any, an Empowered
Committee has been constituted by National Bank for Agriculture and Rural Development in terms of para 2(vi) of DFS
letter F.No.15/15/2015(E)-RRB dated the 13th November, 2024 of Government of India.
8. The transferee Regional Rural Bank shall have the power to post or appoint the employees in the interest of
the bank and the public as a whole anywhere in the entire area of operation of the transferee Regional Rural Bank.
9. The area of operation of the transferee Regional Rural Bank shall be the combined area of operation of the
transferor Regional Rural Banks viz. Telangana Grameena Bank and part of Andhra Pradesh Grameena Vikas Bank
operating in the State of Telangana.
10. Unless otherwise expressly provided in this notification, the provisions of the Act shall have the same effect
on the transferee Regional Rural Bank as if it has been established under sub-section (1) of section 3 of the Act.
[F. No. 7/6/2024-RRB(10)]
M.P. TANGIRALA, Addl. Secy.