Bank Merger News: The Reserve Bank of India (RBI) has officially approved the merger of four major cooperative banks in Gujarat, effective as of December 15, 2025. This strategic decision aims to enhance the strength of the cooperative banking sector in the region. Following this announcement, the four banks will now operate as two more robust entities.
Bank Merger News : Merger completed under two schemes
This merger has been executed in line with the provisions set forth in the Banking Regulation Act, 1949, aiming to provide new impetus and greater resilience to Gujarat’s cooperative banking landscape. Interestingly, it was a voluntary process, carried out with the mutual consent of the affected banks.
Under the first significant merger scheme, The Amod Nagrik Cooperative Bank has merged with The Bhuj Mercantile Cooperative Bank, located in Ahmedabad. This merger is operational from today, meaning all branches of The Amod Nagrik Cooperative Bank will now function as branches of The Bhuj Mercantile Cooperative Bank. This initiative has been facilitated under Section 44A of the Banking Regulation Act, encouraging voluntary mergers between institutions.
In the second key merger scheme, Amarnath Cooperative Bank has merged with Kalupur Commercial Cooperative Bank. Post-merger, every branch of Amarnath Cooperative Bank will commence operations as part of Kalupur Commercial Cooperative Bank.
What will happen to customers’ deposited money?
Following the RBI’s merger approval, one primary concern for customers is the safety of their deposited funds. Customers can breathe easier as the RBI has assured them that this merger will not adversely affect their existing deposits. Banking services will proceed as normal, and all customer funds will remain completely secure.
In conclusion, these mergers represent a significant step towards strengthening the cooperative banking sector in Gujarat. The RBI’s oversight has ensured a smooth transition, with customer interests at the forefront of this initiative.
Frequently Asked Questions
What does the RBI merger mean for customers of the affected banks?
The RBI has guaranteed that customers’ deposits will remain secure and that banking services will continue without interruption, providing peace of mind to affected bank customers.
What are the benefits of the bank mergers?
These mergers aim to strengthen the cooperative banking sector by creating larger, more resilient banks that can provide enhanced services and stability to customers.
Will branch locations change after the mergers?
Yes, all existing branches of the merged banks will continue to operate under the parent bank’s brand, ensuring continuity for customers in their banking services.
What regulatory framework governs these mergers?
The mergers are conducted under the provisions of the Banking Regulation Act, 1949, specifically Section 44A, which allows for voluntary mergers between banks.
Are there any changes to banking services offered to customers?
No immediate changes are expected; customers can continue to access the same services they had prior to the mergers, as operations will continue smoothly.
