RBI Approves Amalgamation of 2 Gujarat Co-Operative Banks

The Reserve Bank of India (RBI) has approved the voluntary amalgamation of 2 co-operative banks in Gujarat, according to notifications issued on December 12, 2025. The first merger involves The Amod Nagric Co-operative Bank Ltd., Amod, with The Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad.

The second amalgamation is between Amarnath Co-operative Bank Ltd., Ahmedabad, and The Kalupur Commercial Co-operative Bank Ltd., Ahmedabad. Both schemes will come into effect from December 15, 2025.

Amalgamation Details

The RBI sanctioned the Scheme of Amalgamation for both banks under sub-section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949. Following the implementation, all branches of The Amod Nagric Co-operative Bank will operate as branches of The Bhuj Mercantile Co-operative Bank.

Similarly, branches of Amarnath Co-operative Bank will function under The Kalupur Commercial Co-operative Bank. The approval ensures continuity of banking services for customers of both merging entities.

Background And Regulatory Framework

The Banking Regulation Act, 1949, provides the legal basis for the voluntary amalgamation of co-operative banks, subject to RBI approval. Section 44A outlines the process for such mergers, while Section 56 extends these provisions to co-operative banks.

Voluntary amalgamations are typically initiated to strengthen financial stability and improve operational efficiency. RBI’s approval confirms compliance with statutory requirements and safeguards for depositors.

Operational Impact

From December 15, 2025, customers of The Amod Nagric Co-operative Bank and Amarnath Co-operative Bank will experience a transition in branch operations. All existing accounts, deposits and loans will be migrated to the respective acquiring banks.

The Bhuj Mercantile Co-operative Bank and The Kalupur Commercial Co-operative Bank will assume full responsibility for servicing these accounts. The move is expected to streamline operations and enhance service delivery under larger banking networks.

Additional Details and Implementation

Both amalgamations will be implemented simultaneously on December 15, 2025. RBI’s notifications specify that the schemes have been approved after due consideration of financial and operational aspects.

Customers have been advised to continue their transactions without disruption, as all banking facilities will remain available under the new arrangements. The acquiring banks are expected to integrate systems and processes to ensure a smooth transition.

Read More: RBI Governor Urges Banks to Pass on Rate Cuts to Customers.

Conclusion

The RBI’s approval of these voluntary amalgamations marks a significant development in Gujarat’s co-operative banking sector. The mergers aim to consolidate resources and improve service efficiency for customers.

With regulatory clearance and clear timelines, the transition is set to be completed without operational hurdles. Both acquiring banks will expand their branch networks and customer base following the implementation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.