All formalities complete for merger of JKGB, EDB

Sanjay Gupta to be Chairman
Two regional banks to work as one entity from today

Avtar Bhat

JAMMU, Apr 30: Under the one State, One Regional Rural Bank (RRB) policy of Government of India, J&K Grameen Bank (JKGB) and Ellaquai Dehati Bank (EDB) are being merged from tomorrow under the name Jammu and Kashmir Grameen Bank.

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According to official sources, all the formalities between the two banks for merger have been completed. From tomorrow all the 110 branches of EDB and 216 branches of JKGB will function under one Jammu and Kashmir Gramin Bank in the UT with Headquarters at Jammu. Sanjay Gupta who is chairman of J K Grameen Bank will continue to be the Chairman of Jammu and Kashmir Grameen Bank.
Established in late seventies to empower the impoverished by providing access to micro credit thereby enabling them to pursue small business and improve their livelihoods, the RRBs aimed to be a self helping tool for poor. The objective of both Grameen and Elaquai Dehati Bank has been to promote the financial independence among the poor.
However, under the new policy the two regional banks will merge into a single entity in the public interest and in the interest of the development of the area served and also in the interest of RRBs themselves.
Official sources said the effective amalgamation date has been fixed to May 1 as per the gazette notification dated April 15 last year. As per the notification in line with powers granted under Section 23 A(1) of the Regional Rural Banks Act 1976, these RRBs will emerge into a single entity.
As per the Gazette notification RRBs in 11 States/UT including Jammu and Kashmir, Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan are to be merged into one entity to realise the goal one State one RRB.
Sources said in Jammu and Kashmir UT, Grameen Bank and Ellaquai Dehati Bank sponsored by J&K Bank and State Bank of India respectively after their merging into a single entity will be sponsored by Jammu and Kashmir Bank (JK Bank). The banks were formed under the RRB Act 1976 with the objective of providing credit and other facilities to the small farmers, agricultural labourers and artisans in the rural areas, sources said, adding the Act was amended in 2015 where such banks were permitted to raise capital from sources other than the Centre, States and sponsor banks.
Terming it a better decision, General Manager, EDB Srinagar Mushtaq Ahmed said the assets of two Grameen Banks will accumulate with merger as Public Sector Banks. Earlier the RRBs were confined to KCCs only, he added.
He said now villages are no longer the old villages they have developed and their assets increased hence the RRBs assets and capital will also increase after merger and they can function like other nationalised banks and their area of operation will be more.
He said in the next phase all the regional rural banks in the country will be merged under National Regional Rural Bank.
Out of its 110 branches EDB has 82 branches in Kashmir valley while 28 in different parts of Jammu. The Jammu branches were opened after the mass exodus of people from Valley in 1989 to accommodate the migrant employees here.
It may be recalled that earlier Kamraz Rural Bank which was sponsored by JK Bank and was functioning in rural belt of North Kashmir was merged with Grameen Bank and now the EDB which was sponsored by SBI and had its branches in Central and South Kashmir as well as Jammu region has been merged with Grameen Bank.

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