Home India Ministry of Finance Parliament Question: Problems Faced by Farmers in Rural Bank...
Date: 2025-07-21 Category: Not Applicable State: Union Government Country: India

Parliament Question: Problems Faced by Farmers in Rural Banks in Uttar Pradesh

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

**Policy Summary: Uttar Pradesh Gramin Bank Amalgamation - Resolution of Technical Issues Affecting Farmers** This policy addresses concerns raised regarding technical challenges faced by farmers in accessing government scheme loans following the amalgamation of Baroda UP Bank, Aryavart Bank, and Prathama UP Gramin Bank into Uttar Pradesh Gramin Bank, effective May 1, 2025. The amalgamation, sponsored by Bank of Baroda with its head office in Lucknow, was officially notified on April 5, 2025, via Gazette Notification S.O. 1634E. Specifically, the policy acknowledges reported issues such as a lack of updated Bank Codes and Branch data affecting farmers in Etawah, Etah, Kasganj, Moradabad, and Amroha. In response, the government has established a State Level Monitoring Committee (SLMC) and a National Level Project Monitoring Unit (NLPMU) to oversee the amalgamation's implementation and safeguard the interests of rural customers. The NLPMU has directed all Regional Rural Banks (RRBs), including Uttar Pradesh Gramin Bank, to proactively communicate amalgamation details through electronic and print media, SMS messaging, and branch-level customer awareness meetings. RRBs have also been instructed to establish call centers to address customer grievances. The government, through NABARD, has affirmed that all branches continue to operate under the new entity, ensuring uninterrupted banking services. Customer account, deposit, and loan migration is underway with minimal disruption. The policy aims to ensure farmers receive timely access to the benefits of government schemes.

Key Entities Referenced

Uttar Pradesh Gramin Bank: A Regional Rural Bank (RRB) in Uttar Pradesh constituted by merging Baroda UP Bank, Aryavart Bank and Prathama UP Gramin Bank. Baroda UP Bank: One of the banks that merged to form Uttar Pradesh Gramin Bank. Aryavart Bank: One of the banks that merged to form Uttar Pradesh Gramin Bank. Prathama UP Gramin Bank: One of the banks that merged to form Uttar Pradesh Gramin Bank. Etawah, Uttar Pradesh: A rural area in Uttar Pradesh where farmers faced technical problems with banks. Bank of Baroda: The sponsoring bank for Uttar Pradesh Gramin Bank. State Level Monitoring Committee SLMC: Committee constituted by the Government to oversee and monitor the implementation of the amalgamation programme. National Level Project Monitoring Unit NLPMU: Unit constituted by the Government to oversee and monitor the implementation of the amalgamation programme.
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Government of India Ministry of Finance Department of Financial Services LOK SABHA UNSTARRED QUESTION NO. 26 ANSWERED ON MONDAY, JULY 21, 2025/ ASHADHA 30, 1947 (SAKA) Problems Faced by Farmers in Rural Banks in Uttar Pradesh † 26. Shri. Devesh Shakya: Will the MINISTER OF FINANCE be pleased to state: (a) whether it is a fact that the “Uttar Pradesh Gramin Bank” was constituted on 1 May, 2025 by merging of Baroda UP Bank, Aryavart Bank and Prathama UP Gramin Bank; (b) whether it is also a fact that the farmers of rural areas in Etawah, Etah, Kasganj, Moradabad and Amroha have to face technical problems like lack of updation of Bank Code, Branch data etc. when they visit their banks to receive loan under Government Schemes; (c) if so, whether the Government is aware of such problems and the time by which these problems are likely to be resolved; and (d) whether the Government has fixed any timeline for the resolution of these problems with a view to enable farmers to get timely benefits of the schemes? Answer THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) The Central Government, vide Gazette Notification S.O. 1634(E) dated 5th April 2025, notified the amalgamation of Baroda U.P. Bank, Aryavart Bank and Prathama U.P. Gramin Bank into a single Regional Rural Bank i.e. Uttar Pradesh Gramin Bank, with its head office at Lucknow under the sponsorship of Bank of Baroda, with effect from 1st day of May, 2025. (b to d): The Government has constituted State Level Monitoring Committee (SLMC) and National Level Project Monitoring Unit (NLPMU) to oversee and monitor the implementation of the amalgamation programme. To protect the interest of rural customers, the NLPMU has advised all Regional Rural Banks (RRBs) to give adequate publicity of amalgamation through various communication channels (electronic & print media, SMS to customers, customer awareness meets at branch level etc). Further, RRBs have been advised to take necessary steps to set up call centres to handle customer grievances. As informed by NABARD, all branches continue to function under the new entities, ensuring uninterrupted access to banking services. Migration of customer accounts, deposits, and loans is being carried out without any major disruption. ******

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