The Ministry of Finance has notified that two rural banks sponsored by Canara Bank and Bank of India are to be amalgamated into a single regional rural bank.
Aryavart Kshetriya Gramin Bank and Shreyas Gramin Bank sponsored by Bank of India and Canara Bank respectively in the state of Uttar Pradesh are to be amalgamated into a single Regional Rural Bank, which shall be called the Gramin Bank of Aryavart.
The decision was taken following consultations with various parties including the State Government of Uttar Pradesh, according to an exchange notification by Canara Bank.
It would have its head office in Lucknow and function under the sponsorship of Bank of India with effect from April 01, 2013.
The Finance Ministry plans amalgamation of geographically close Regional Rural Banks sponsored by different banks within a state, with a single sponsor bank in a bid to help in ‘optimizing the use of modern technology,’ according to the notification.
“Accordingly, the Ministry of Finance, Government of India, vide its letter dated April 01, 2013 after consulting NABARD, concerned sponsor banks and State Government of Uttar Pradesh has notified that ….(the two banks )…. are hereby amalgamated into a single Regional Rural Bank,” said the exchange notification.