Bank Merge News: The Reserve Bank of India has granted final approval for the merger of four cooperative banks in Gujarat. The merger took effect today.
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Bank Merger News: The Reserve Bank of India (RBI) has slashed the size of four cooperative banks. The RBI has granted final approval for the merger of four major cooperative banks in Gujarat. This merger will become effective today, December 15, 2025. Following this decision, the four banks will now operate as two strong banks. This merger was carried out under the provisions of the Banking Regulation Act, 1949, and aims to provide new direction and strength to the cooperative banking sector in Gujarat. According to an official statement from the Reserve Bank of India, this merger was done on a voluntary basis, with the mutual consent of the banks concerned.
Mergers Under Two Schemes
Under the first significant merger scheme, The Amod Nagrik Cooperative Bank has merged with The Bhuj Mercantile Cooperative Bank, based in Ahmedabad. This merger became effective today. From today, all existing branches of The Amod Nagrik Cooperative Bank will now operate as branches of The Bhuj Mercantile Cooperative Bank. This merger has been done under Section 44A of the Banking Regulation Act, which facilitates the process of voluntary merger of two banks.
In another major merger, Amarnath Cooperative Bank has merged with Kalupur Commercial Cooperative Bank. Following the merger, all branches of Amarnath Cooperative Bank will now operate as branches of Kalupur Commercial Cooperative Bank.
What will happen to customers’ deposits?
After the Reserve Bank of India (RBI) approved the merger, the first question on customers’ minds is whether their deposits are safe. In this regard, the RBI has provided significant relief to customers. The RBI has clarified that this merger will not negatively impact the banks’ existing customers. Banking services will continue as smoothly as before.
