- The Reserve Bank of India (RBI) has given the green light to two voluntary mergers involving urban co-operative banks in Gujarat, marking a significant step towards consolidation in the cooperative banking sector.
- In the first instance, the RBI has approved the merger of The Amod Nagric Co-operative Bank Ltd., based in Amod, with The Bhuj Mercantile Co-operative Bank Ltd.
- This approval comes under sub-section (4) of Section 44A, in conjunction with Section 56 of the Banking Regulation Act, 1949.
- The merger is set to take effect on December 15, 2025 (Monday).
- After the merger, all branches of the Amod Nagric Co-operative Bank Ltd.
The Reserve Bank of India (RBI) has given the green light to two voluntary mergers involving urban co-operative banks in Gujarat, marking a significant step towards consolidation in the cooperative banking sector.
In the first instance, the RBI has approved the merger of The Amod Nagric Co-operative Bank Ltd., based in Amod, with The Bhuj Mercantile Co-operative Bank Ltd. in Ahmedabad.
This approval comes under sub-section (4) of Section 44A, in conjunction with Section 56 of the Banking Regulation Act, 1949. The merger is set to take effect on December 15, 2025 (Monday). After the merger, all branches of the Amod Nagric Co-operative Bank Ltd. will operate as branches of The Bhuj Mercantile Co-operative Bank Ltd.
In another decision, the RBI has also approved the voluntary merger of Amarnath Co-operative Bank Ltd. in Ahmedabad with The Kalupur Commercial Co-operative Bank Ltd., also in Ahmedabad, following the same legal framework.
This merger will also take effect on December 15, 2025. As a result, all branches of Amarnath Co-operative Bank Ltd. will function as branches of The Kalupur Commercial Co-operative Bank Ltd.
These mergers are part of the RBI’s ongoing mission to enhance the financial stability, governance, and operational efficiency of urban co-operative banks. The consolidations aim to provide greater stability, better service delivery, and improved protection for depositors within the cooperative banking system.