Bank Merger Update: The Reserve Bank of India (RBI) has slashed the banks of four cooperative banks. The RBI has given final approval for the merger of four major cooperative banks of Gujarat. This merger has come into effect from today, December 15, 2025. After this decision of RBI, now the four banks will work together as just two strong banks.
This merger has been done under the provisions of the Banking Regulation Act, 1949. And its purpose is to give new direction and strength to the cooperative banking sector of Gujarat. According to the official statement of the Reserve Bank of India, this merger has been done on a voluntary basis, i.e. with the mutual consent of the concerned banks.
Merger of two plans
In a first significant merger plan, The Amod Nagrik Cooperative Bank has merged with The Bhuj Mercantile Cooperative Bank, 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 the customers’ deposits?
Following the Reserve Bank of India’s (RBI) approval of the merger, the primary 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.