Ahmedabad: In a move to strengthen the cooperative banking sector, the Reserve Bank of India (RBI) has sanctioned the voluntary amalgamation of four urban cooperative banks in Gujarat, effective from December 15.
The mergers involve two separate consolidations. The first consolidation involves the amalgamation of The Amod Nagrik Co-operative Bank with The Bhuj Mercantile Co-operative Bank, which is based in Ahmedabad. In the second, Amarnath Co-operative Bank has merged into Kalupur Commercial Co-operative Bank.
These amalgamations, executed under Section 44A of the Banking Regulation Act, 1949, stem from mutual agreements among the institutions. Officials emphasise that the restructuring aims to foster growth and stability within Gujarat’s cooperative banking framework through enhanced structural efficiency.
Customers need not worry, as the RBI has assured continuity of services. Branches of the absorbed banks will now function under the respective transferee banks’ banners, with no disruptions to accounts, deposits, or transactions. The central bank reiterated that depositors’ funds remain fully secure, and all banking operations will proceed seamlessly, albeit under the new entity names.
Such consolidations reflect ongoing efforts to rationalise the cooperative sector, reducing fragmentation while bolstering financial resilience. Stakeholders view this as a positive step towards more robust regional banking infrastructure in Gujarat.