The Regional Rural Banks (RRBs) were established based on the recommendations of the Narsimham Committee on Rural Credit. In response to these recommendations, the Government of India enacted the Regional Rural Banks Act, 1976, leading to the formation of RRBs across various regions of the country. The primary objective behind the establishment of these banks was to strengthen the rural economy by providing credit and financial services to underserved rural populations.
Amalgamation Process (2005–2019)
As part of the restructuring process initiated in 2005, RRBs sponsored by the same banks were amalgamated to improve operational efficiency and service delivery. Key mergers included:
- Baroda Gujarat Gramin Bank:
Formed through the merger of - Panchmahal Vadodara Gramin Bank
- Surat Bharuch Gramin Bank
- Valsad Dang Gramin Bank
(Sponsored by Bank of Baroda) - Dena Gujarat Gramin Bank:
Formed through the merger of - Banaskantha Mehsana Gramin Bank
- Kutch Gramin Bank
- Sabarkantha Gandhinagar Gramin Bank
(Sponsored by Dena Bank) - Saurashtra Gramin Bank:
Formed through the merger of - Junagadh Amreli Gramin Bank
- Surendranagar Bhavnagar Gramin Bank
- Jamnagar Rajkot Gramin Bank
(Sponsored by State Bank of India)
On 22 February 2019, through Gazette Notification No. 855, the Government of India announced the amalgamation of Baroda Gujarat Gramin Bank and Dena Gujarat Gramin Bank, effective from 1 April 2019. The merged entity continued under the name Baroda Gujarat Gramin Bank, with Bank of Baroda as the sponsoring bank.
Latest Amalgamation (Effective 1 May 2025)
According to Gazette Notification No. CG-DL-E-07042025-262329, dated 7 April 2025, the Government of India has further amalgamated:
- Baroda Gujarat Gramin Bank (sponsored by Bank of Baroda)
- Saurashtra Gramin Bank (sponsored by State Bank of India)
into a single Regional Rural Bank named Gujarat Gramin Bank. This new entity is sponsored by Bank of Baroda, and its head office is located in Vadodara. The merger is effective from 1 May 2025 and aims to unify rural banking operations across Gujarat under a single institution for better outreach and governance.