Why Bihar Gramin Bank Merger of UBGB and DBGB Matters for Customers

The merger of Uttarbihar Gramin Bank (UBGB) and Dakshin Bihar Gramin Bank (DBGB) into a single Bihar Gramin Bank from 01.05.2025 matters because it changes how rural banking services in Bihar are organised and delivered. For customers it affects where accounts are managed, how technology and service standards are applied, and how communication and problem-resolution will work during the transition. Below I explain what the merger means, why it happened, the legal basis, practical effects, likely short-term issues, and plain steps you should take.

What is bank amalgamation?

An amalgamation means two banks legally combine into one entity. That new bank inherits the assets and liabilities of both predecessor banks. Practically, customer accounts, loans, deposits and branch facilities move into a single legal and technical structure. The goal is to reduce duplication and run services from one unified back office and core-banking system (CBS).

Why the government merged UBGB and DBGB

The merger follows the government’s “one‑state, one‑RRB” approach. Why that matters for you:

• Simpler access: One RRB covering all of Bihar removes overlaps and makes it easier to standardise products and branch use across districts.
• Stronger balance sheet: Combining resources improves capital support, liquidity and credit capacity. That helps when the bank extends loans for agriculture, small businesses and local needs.
• Better tech and services: A larger, unified bank can afford a better core-banking system, mobile app upgrades and stronger customer service.

Legal basis and Gazette notification (effective 01.05.2025)

The merger takes legal effect from the Government of India’s Gazette notification dated 01.05.2025. Under the provisions that govern Regional Rural Banks, the central government (in consultation with sponsor bank, NABARD and the Reserve Bank as required) issues the order to amalgamate. The Gazette notification is the formal, legal document that makes the merger binding. It lists the merged name, effective date and other administrative details. Customers should treat 01.05.2025 as the official date when the new legal entity begins operations.

Sponsor bank, head office, branch network and area of operation

The sponsor bank for the merged entity is Punjab National Bank (PNB). A sponsor bank provides managerial, technological and supervisory support to the Regional Rural Bank. The Gazette also designates the new head office address and formal area of operation for the merged RRB. For customers this means:

• All existing branches of UBGB and DBGB become branches of the new Bihar Gramin Bank.
• The bank’s area of operation consolidates to cover the entire state under a single RRB policy and product set.
• Administrative oversight and technical upgrades will be led by PNB in coordination with the merged bank’s management.

Continuity of services during transition

Day‑to‑day banking is designed to continue uninterrupted. Specifically:

• Account balances and deposits: Your money remains safe. Deposits and balances move to the merged bank automatically.
• Loans and EMIs: Loan terms, interest rates and repayment schedules remain as per existing agreements unless explicitly revised in writing. EMIs continue.
• Debit/credit cards: Cards typically remain valid. If any card is reissued, the bank will notify you well in advance.
• Cheque books and passbooks: Existing cheques and passbooks remain valid until the bank issues replacements.
• Internet and mobile banking: Services are planned to continue. Short outages may occur during CBS migration windows, but the bank will announce these.

Changes (or non‑changes) customers should expect

Most customer-facing items will stay the same, but watch for a few technical updates:

• Account numbers: Usually unchanged. If any account number is altered, the bank must notify you and map old numbers to new ones so direct debits and credits keep working.
• IFSC and branch codes: Some IFSC/branch codes may change in the backend. Payments routed through old IFSCs generally continue to work during a mapping period, but you should confirm the new IFSC if you frequently receive NEFT/RTGS/IMPS credits.
• Internet banking login: Credentials are normally retained, but you may be asked to reset passwords after migration for security.
• Interest rates and product terms: Existing deposit and loan contracts remain unchanged. New customers and new products will follow the merged bank’s policies.
• Customer IDs and KYC: KYC remains valid; however, if the bank requests updated documents, respond quickly to avoid service blocks.

Common FAQs and customer reassurance

• Will my money be safe? Yes. The merged bank legally assumes all liabilities of UBGB and DBGB. Deposit insurance and regulatory protection remain in place.
• Will my EMI or standing instruction stop? No—standing instructions and scheduled debits are migrated. If you see any failure, contact your branch immediately and keep transaction screenshots.
• Do I need a new passbook or cheque leaf? Not immediately. The bank will issue new stationery as needed. Keep using existing items until told otherwise.
• Who handles complaints? Your existing branch continues to handle complaints. The bank will also publish a helpline, grievance officer details and escalation steps after the merger.

What to expect next: CBS migration and communication

The core-banking system migration is the key operational step after the legal merger. Expect:

• Advance notices about planned downtime for net‑banking, ATMs or branch services. Downtimes are usually short but can extend to a day or two for cutover activities.
• SMS, email and public notices explaining any changes in IFSC, branch codes or customer portals.
• Branch-level sessions where staff help customers with passwords, passbooks and new forms.

Practical tips for customers during the transition

• Keep records: Download or print recent account statements, loan schedules and tax-related interest certificates before 01.05.2025.
• Update payees: Confirm the correct IFSC or account details before asking employers or clients to change salary or payments. Wait for the bank’s official update if unsure.
• Avoid large non-essential transfers: Don’t initiate high-value transfers or term deposit renewals during the announced migration window.
• Carry alternate payment options: Have cash, UPI apps or another bank card handy for the migration day in case of brief outages.
• Respond to bank notices quickly: If the bank requests KYC or a signature, act fast to avoid service disruption.
• Note helpline numbers: Save the branch and central helpline numbers the bank provides for fast help.

In short: the merger aims to make rural banking in Bihar more efficient and better resourced. For most customers, day‑to‑day banking will continue with minimal interruption. Expect clear communications from the bank and plan conservative banking activity around announced migration dates. If you have a specific concern—a loan disbursement, a recurring payment, or a time‑sensitive fund transfer—raise it with your branch now so they can advise or make arrangements before the CBS cutover.