A
pioneering initiative by J&K Bank today facilitated the
state's maiden banking sector merger
culminating into the establishment of
J&K Grameen Bank.
Two Regional Rural Banks sponsored by
J&K Bank in J&K State namely Kamraz
Rural Bank and Jammu Rural Bank have
been amalgamated and will now operate
under as single new Regional Rural Bank
- "J&K Grameen Bank" from July 1, 2009.
The area of operation of J&K Grameen
Bank shall be the combined area of
operation of amalgamated RRBs. The head
office of the bank shall be located at
Jammu.
A notification to this effect was issued
today by GOI Ministry of Finance,
Department of Financial Services,
Government of India while exercising the
powers conferred by sub-section (1) of
section23A of the Regional Rural Banks
Act, 1976 (21 of 1976) (hereafter
referred to as "the Act"). According to
the notification, from the effective
date of amalgamation, the transferor
RRBs viz. Kamraz Rural Bank and Jammu
Rural Bank shall cease to carry on the
business and the transferee RRB i.e. J&K
Grameen Bank shall come into existence
and commence its business w.e.f. from
the date of publication of the
notification.
While commenting on the amalgamation of
KRB and JRB, Dr. Haseeb A. Drabu,
Chairman and Chief Executive of J&K Bank
said that the consolidated new strong
RRB in the State (J&K Grameen Bank)
would pave way for enhancing economic
development in the State. "J&K Grameen
Bank will revolutionize mainstay of our
economy and will have its main focus on
agriculture lending and rural lending.
There will be deepening of financial
inclusion in the rural sector and
enlarging outreach for empowering rural
population with variety of banking
services. The new formation will ensure
much needed credit delivery to promote
agriculture production and other
productive and employment generating
enterprises in the state," said Dr.
Haseeb A Drabu.
Introducing an entirely new financial
architecture in the State, Grameen Bank
would function on the same technological
platform as is available to the
customers of the J& K Bank with
state-of-the-art business transaction
facilities," told J& K Bank Chairman Dr Haseeb Drabu, who piloted the landmark
move. According to Drabu, J& K Grameen Bank would pave the
way for speeding up inclusive economic
development in the State with focus on
micro lending. " The J&K Grameen Bank
will revolutionize mainstay of the
State's economy with focus on micro-
lending in agriculture, horticulture and
handicraft sectors," he said and added
there will be deepening of financial
inclusion in the rural sector and
enlarging outreach for empowering rural
population with variety of banking
services. The new formation will ensure
much needed credit delivery to promote
agriculture production and other
productive and employment generating
enterprises," Dr Drabu said.
Meanwhile, following the amalgamation,
the undertakings of the Kamraz Rural
Bank and Jammu Rural Bank shall stand
transferred to and shall vest to the
‘J&K Grameen Bank'. The undertakings
shall include assets, rights, powers,
authorities and privileges and all
property movable and immovable, cash
balance, reserve funds, investments and
all other rights and interests in or
arising out of such property, as are
immediately before the commencement of
the notification.
If, on the effective date of
amalgamation, any suit, appeal or other
proceedings of whatsoever nature in
relation to any business of the
transferor Regional Rural Banks are
pending by, or against to, the
transferor Regional Rural Banks, the
same shall not abate, be discontinued or
be, in any way, prejudicially affected
by reason of the transfer of the
undertaking of the transferor Regional
Rural Banks or of anything contained in
the notification but the suit, appeal or
other proceedings may be continued,
prosecuted and enforced by, or against,
the transferee Regional Rural Bank.
According to the notification, in
respect of every savings banks account
or current account or any other deposit
account including a fixed deposit, cash
certificate, monthly deposit, deposit
payable at call or short notice or any
other deposits by whatever name called
with the transferor Regional Rural Bank,
the transferee Regional Bank shall open
with itself on the effective date of
amalgamation a corresponding and similar
account in the name of respective
holder(s) thereof crediting thereto full
amount including interest by the extent
payable.
All contracts, deeds, bonds, agreements,
guarantees, powers of attorney, grants
of legal representation and other
instruments of whatsoever nature
subsisting or having effect immediately
before the commencement of this
notification and to which the transferor
Regional Rural Banks are a party or
which are in favour of the transferor
Regional Banks shall be in full force
and effect against or in favour of the
transferee Regional Rural Bank (J&K
Grameen Bank) and may be enforced or
acted upon fully and effectively, says
the notification.
The services of all the employees of the
transferor Regional Banks (excepting
such of them as not being workmen within
the meaning of the Industrial Disputes
Act, 1947) shall continue in the
transferee Regional Rural Bank at the
same remuneration and on the same terms
and conditions of service, which they
were getting or, as the case may be, by
which they were governed immediately
before the effective date of
amalgamation.
