RBI Triggers Historic Banking Change: Four Banks Merge Into One

In a decisive step toward strengthening India’s banking ecosystem, the RBI has sanctioned the merger of four regional co‑operative banks into one consolidated institution. The restructuring, carried out under the Banking Regulation Act, is designed to reduce systemic risks, safeguard depositor interests, and create a more resilient financial framework. Customers of the merged banks will continue to enjoy uninterrupted services, with deposits and loans fully protected under the new arrangement.  

Key Highlights  

• Amod Nagric Co‑operative Bank Ltd. merged with The Bhuj Mercantile Co‑operative Bank Ltd.  
• Amarnath Co‑operative Bank Ltd. merged with The Kalupur Commercial Co‑operative Bank Ltd.  
• Effective date of merger: December 15, 2025, as per RBI notification issued December 12, 2025  
• All branches of the merged banks will now operate under the surviving institutions  
• Deposits, loans, and customer accounts remain safeguarded and seamlessly integrated  
• RBI emphasizes improved governance, efficiency, and customer service as primary outcomes  

Impact  
The consolidation is expected to strengthen the co‑operative banking sector, enabling better competitiveness and operational efficiency. For millions of account holders, the merger ensures continuity while promising enhanced services, positioning India’s co‑operative banks for a more sustainable future.  

Sources: CNBC TV18, News18, GoodReturns, Indian Masterminds