From December 15, 2025, four Gujarat cooperative banks have merged into two stronger entities under RBI approval, ensuring seamless service for depositors while bolstering the sector's stability.
Reasons for RBI's Merger Push
The RBI approved these voluntary mergers under the Banking Regulation Act, 1949, to tackle governance issues, rising compliance costs, and capital shortages in smaller cooperative banks. High-profile failures prompted tighter supervision, making consolidation a proactive fix over closures.
Gujarat's banks chose mergers to protect depositors and modernize, with due diligence confirming asset quality and member consent.
Merger Details
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Amod Nagrik Cooperative Bank merges into Bhuj Mercantile Cooperative Bank (Ahmedabad HQ); all Amod branches now operate under Bhuj.
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Amarnath Cooperative Bank merges into Kalupur Commercial Cooperative Bank, leveraging Kalupur's solid balance sheet and reach.
These shifts expand networks without disrupting accounts or services.
Impact on Customers
Deposits stay fully protected, with unchanged balances, interest rates, and access to withdrawals, cheques, and digital banking. Expect phased updates like new cheque books or IFSC codes, but no immediate hitches.
Rural and small business users gain better tech and products from larger setups.
Expert Insights
Analysts view this as sector cleanup: mergers preserve trust, cut disruptions, and boost efficiency versus collapses. Consultant Ramesh Patel notes cooperatives must evolve beyond sentiment for viability.
Broader RBI Trends
Similar consolidations hit Maharashtra, Karnataka, and UP; Gujarat's dual scheme on one date shows proactive regulation. RBI now favors early voluntary action over crises.
Future Outlook
More mergers likely for small banks as digital demands grow; expect fewer, stronger cooperatives with commercial-like services. RBI prioritizes depositor safety amid change.
Disclaimer: Verify with your bank or RBI for specifics; this is informational only.