Bank Merger: Ellaquai Dehati Bank and JKGB to Form Jammu and Kashmir Grameen Bank

Published On: May 1, 2025

Merger of J&K Grameen Bank (JKGB) and Ellaquai Dehati Bank (EDB)

In a transformative step under the Government of India’s “One State, One Regional Rural Bank (RRB)” policy, Bank merger of J&K Grameen Bank (JKGB) and Ellaquai Dehati Bank (EDB) have officially merged into a single entity—Jammu and Kashmir Grameen Bank, effective May 1, 2025. This merger marks a significant milestone in the development of rural and semi-urban banking in the Union Territory, aimed at strengthening financial inclusion and improving credit accessibility.

Official Notification and Effective Date of Bank Merger

According to Gazette Notification CG-DL-E-07042025-262329 issued by the Department of Financial Services, Government of India on April 7, 2025, the merger has been legally approved and is now in effect. All banking operations, services, and commitments of JKGB and EDB have been seamlessly transferred to the unified Jammu and Kashmir Grameen Bank. The bank’s new headquarters is located at Narwal, Jammu, and its official website is www.jkgrameen.in.

All 326 Branches Now Operate as One of of J&K Grameen Bank (JKGB) and Ellaquai Dehati Bank (EDB)

The consolidated entity now brings together 110 branches from Ellaquai Dehati Bank and 216 branches from J&K Grameen Bank, forming a network of 326 branches under one umbrella. Customers across Jammu & Kashmir can expect uninterrupted services, unified customer support, and consistent banking experiences. Sanjay Gupta, who previously served as the Chairman of JKGB, will continue to lead the unified bank.

Empowering Rural Development: The Core Objective

Both JKGB and EDB were established with a shared vision—to empower rural communities by providing access to microfinance, agricultural credit, and entrepreneurial support. This merger enhances their ability to support self-employment, small businesses, and rural artisans by increasing the availability of credit and modern banking services.

National Reform Under RRB Act, 1976

The merger is a part of broader financial sector reforms guided by Section 23A(1) of the Regional Rural Banks Act, 1976. As part of the central government’s policy, 11 states and union territories, including Jammu & Kashmir, Andhra Pradesh, Uttar Pradesh, Bihar, Maharashtra, Odisha, Rajasthan, and others, are undergoing similar RRB consolidations. This reform aims to streamline operations, reduce costs, and provide uniform banking services across wider geographic areas.

New Sponsorship: J&K Bank Takes the Lead

Following the merger, the Jammu & Kashmir Grameen Bank will be sponsored solely by J&K Bank, replacing the earlier dual sponsorship—JKGB by J&K Bank and EDB by State Bank of India (SBI). This aligns with the amendments made to the RRB Act in 2015, which allow these banks to raise capital from sources beyond the central and state governments and sponsor banks, thus opening doors for stronger capitalization.

Why the Merger Matters: Benefits to Rural Economy

According to Mushtaq Ahmed, General Manager of EDB Srinagar, this consolidation is a welcome move. He stated that the combined asset base will not only enhance financial strength but also enable the bank to function more efficiently, akin to nationalized banks. With better infrastructure, digital banking facilities, and enhanced credit options, the merged bank is now more capable of meeting the evolving financial needs of rural India.

Technological Advancements and Wider Coverage

The new Jammu and Kashmir Grameen Bank aims to:

Extend digital banking services to remote villages
Implement modern banking technologies
Launch financial literacy campaigns
Improve branch infrastructure and mobile banking support
Reach underbanked communities with tailored products

Toward a National Regional Rural Bank (NRRB)

This merger is a stepping stone toward a larger vision of creating a National Regional Rural Bank (NRRB). By integrating smaller regional banks into larger, centralized systems, the government aims to promote standardized governance, efficient services, and nationwide rural financial integration.

Historical Evolution of Rural Banking in J&K

This isn’t the first major consolidation in J&K’s banking landscape. The Kamraz Rural Bank, which served North Kashmir and was sponsored by JK Bank, was previously merged into JKGB. Now, Ellaquai Dehati Bank, which predominantly operated in Central and South Kashmir and had 28 branches in Jammu, has also been merged. Many of these branches in Jammu were originally established after the 1989 migration from Kashmir, serving displaced communities and employees.

What It Means for Customers

For existing customers of JKGB and EDB:

All accounts, loans, and banking services will continue without disruption.
There will be no change in customer account numbers or branch codes for now.
Customers are encouraged to visit www.jkgrameen.in for updates on interest rates, service charges, and new offerings.
Customer service teams at all branches have been trained to assist during this transition.

Positive Outlook for Jammu and Kashmir’s Rural Economy

With consolidated infrastructure, improved asset base, and expanded service offerings, the newly unified Jammu and Kashmir Grameen Bank is positioned to be a pillar of rural economic empowerment. Key outcomes expected from this merger include:

Increased financial inclusion in remote areas
Enhanced credit flow to agriculture and small businesses
Greater economic stability in rural regions
Empowered local entrepreneurship

The merger of JKGB and EDB into Jammu and Kashmir Grameen Bank is not just a structural change—it’s a vision-driven initiative aimed at building a stronger, more inclusive, and digitally-enabled rural banking ecosystem. With J&K Bank as the sponsor, and the Government of India backing this initiative, the future of rural financial services in Jammu & Kashmir is more promising than ever.

Explore more updates and banking services at www.jkgrameen.in.