The Reserve Bank of India (RBI) has approved the merger of four cooperative banks in Gujarat. After these mergers, only two banks will remain. The RBI gave its approval through separate notifications.
Both mergers have been approved under the provisions of the Banking Regulation Act, 1949, and will come into effect on December 15, 2025.
First Merger: Amod Nagric Bank and Bhuj Mercantile Bank
In the first case, the RBI has approved the merger of The Amod Nagric Co-operative Bank Ltd., Ahmedabad, with The Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad.
This approval has been granted under sub-section (4) of Section 44A, read with Section 56 of the Banking Regulation Act, 1949.
After the merger takes effect, all branches of The Amod Nagric Co-operative Bank will operate as branches of The Bhuj Mercantile Co-operative Bank from December 15, 2025.
Second Merger: Amarnath Bank and Kalupur Commercial Bank
In a separate order, the RBI has also approved the voluntary merger of Amarnath Co-operative Bank Ltd., Ahmedabad, with The Kalupur Commercial Co-operative Bank Ltd., Ahmedabad.
This merger has been approved under the same provisions of the Banking Regulation Act.
Once this merger is implemented, all branches of Amarnath Co-operative Bank will function as branches of The Kalupur Commercial Co-operative Bank from December 15, 2025.
Voluntary Mergers and Impact
According to the RBI notification, both mergers are voluntary and have been carried out with the consent of the concerned banks.
These decisions will lead to structural changes in Gujarat’s cooperative banking sector. From December 15, 2025, all branches of the merged banks will start operating under the new system.