Uttar Pradesh Gramin Bank | 06 May 2025

Why in News? 

Aryavart Bank, Prathama Bank, and Baroda UP Bank—three regional rural banks in Uttar Pradesh—have been merged into a single entity, named ‘Uttar Pradesh Gramin Bank’. 

Key Points 

  • About Uttar Pradesh Gramin Bank : 
    • The objective of this bank is to ensure financial inclusion , integrated management and better customer services in rural areas . 
    • This new bank came into existence from 1st May 2025 under the notification of the Ministry of Finance, Government of India . 
    • The jurisdiction of this newly formed bank will extend to 26 districts of Uttar Pradesh, in which operations will be carried out through a total of 22 regional offices. 
    • The headquarters of this newly formed bank will be established in Lucknow and it will be operated under the sponsorship of Bank of Baroda . 
  • Benefits: 
    • Ease in loan disbursal : Quick loan approval to farmers, self-employed rural entrepreneurs. 
    • Expansion of digital services : Facilities like mobile banking, Unified Payments Interface (UPI), net banking will reach remote villages. 
    • Monitoring of Facilities : A special committee has been formed by NABARD which will assess the convenience of the customers. 

National Bank for Agriculture and Rural Development (NABARD) 

  • NABARD is a development bank that primarily focuses on the rural areas of the country. It is the apex banking institution for providing finance for agriculture and rural development. 
  • Its headquarters is located in Mumbai, the financial capital of the country. 
  • Apart from agriculture, it is responsible for the development of small industries, cottage industries and rural projects. 
  • It is a statutory body established in the year 1982 under the National Bank for Agriculture and Rural Development Act, 1981.