The Reserve Bank of India (RBI) has approved the merger of four cooperative banks in Gujarat. After these mergers are completed, the number of banks involved will reduce from four to two.
The RBI gave its approval through separate official notifications. Both mergers have been approved under the provisions of the Banking Regulation Act, 1949, and will come into effect from 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.
Once this merger is implemented, all branches of The Amod Nagric Co-operative Bank will stop functioning as a separate entity.
From December 15, 2025, these branches will operate as branches of The Bhuj Mercantile Co-operative Bank. This means customers of Amod Nagric Bank will now receive banking services under the Bhuj Mercantile Bank network.
Second Merger: Amarnath Bank and Kalupur Commercial Bank
In another separate order, the RBI has approved the voluntary merger of Amarnath Co-operative Bank Ltd., Ahmedabad with The Kalupur Commercial Co-operative Bank Ltd., Ahmedabad.
This approval has also been given under the same provisions of the Banking Regulation Act, 1949.
Under this merger plan, all branches of Amarnath Co-operative Bank will function as branches of The Kalupur Commercial Co-operative Bank after the merger takes effect.
Like the first merger, this one will also be implemented from December 15, 2025.
Regulatory Approval and Impact on Cooperative Banking
According to the RBI notification, both mergers are voluntary and have been carried out with the consent of the respective banks involved.
The RBI has confirmed that all regulatory requirements have been met before granting approval.
These mergers are expected to bring significant structural changes to Gujarat’s cooperative banking sector.
From December 15, 2025, all branches of the merged banks will begin operating under their new banking systems, which may lead to better management, improved financial stability, and more efficient customer services.
