Banks Merger Update: RBI Approves Merger of Four Co-operative Banks Into Two; What It Means for Customers?

The Reserve Bank of India (RBI) has given its approval for the merger of four co-operative banks, a move that consolidated them into two larger entities. The amalgamations came into force from December 15, 2025, following separate notifications issued by the central bank on December 12, 2025.

The bank mergers have been cleared under the provisions of the Banking Regulation Act, 1949, marking another step in strengthening the co-operative banking sector.

Banks Merger Update: Amod Nagric Co-operative Bank to Merge With Bhuj Mercantile Bank

In the first merger, the RBI has sanctioned the amalgamation of The Amod Nagric Co-operative Bank Ltd., Amod, with The Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad. The approval has been granted under Section 44A(4) read with Section 56 of the Banking Regulation Act, 1949.

Once the merger took effect on December 15, all branches of Amod Nagric Co-operative Bank ceased to operate independently and instead functioned as branches of The Bhuj Mercantile Co-operative Bank. Customers of Amod Nagric automatically became customers of Bhuj Mercantile without any need for additional formalities.

Amarnath Co-operative Bank to Amalgamate With Kalupur Commercial Bank

In a separate notification, the RBI also approved the voluntary amalgamation of Amarnath Co-operative Bank Ltd., Ahmedabad, with The Kalupur Commercial Co-operative Bank Ltd., Ahmedabad. This merger has been sanctioned under the same regulatory provisions and will also be effective from December 15, 2025.

Following the implementation of this scheme, all existing branches of Amarnath Co-operative Bank has started operation under the Kalupur Commercial Co-operative Bank banner, ensuring continuity of services for customers.

How Banks Merger Will Impact Customers? Check RBI's Clarification

Addressing concerns of bank customers, the RBI has clarified that the mergers will not have any adverse impact on depositors. Customers will continue to receive the same banking services as before, without any disruption. The only visible change for account holders will be the name of the bank after the merger.

The central bank assured that deposited money remains fully safe, and customers do not need to take any action regarding their accounts, deposits or loans.

"While the intent is progressive, execution will require careful handling. Integrating IT systems, harmonizing staff policies, aligning organisational cultures and avoiding service disruptions during the transition are some of the critical hurdles. Each newly formed co-operative banks will ensure greater financial stability and operational effectiveness. This will help in providing more efficient services. If executed well, it could position co-operative banks not just as support pillars but as proactive partners in India's financial inclusion journey-bringing affordable credit, government schemes and digital services to every doorstep in India," said Shikhar Aggarwal, Chairman, BLS E-Services.

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