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Reserve Bank of Indiabanking

RBI Approves Amalgamation of Two Banks

May 23, 2026

The Reserve Bank of India has sanctioned the voluntary amalgamation of The Bhavani Sahakari Bank Ltd. with TJSB Sahakari Bank Ltd. effective May 4, 2026, under the Banking Regulation Act.

Amalgamation of The Bhavani Sahakari Bank and TJSB Sahakari Bank

The Reserve Bank of India has approved the voluntary amalgamation of The Bhavani Sahakari Bank Ltd., Mumbai with TJSB Sahakari Bank Ltd., Maharashtra. This approval has been granted under the Banking Regulation Act, specifically citing sub-section (4) of Section 44A along with Section 56.

The Scheme of Amalgamation will take effect from May 4, 2026, allowing for a seamless transition where branches of The Bhavani Sahakari Bank will continue operations as branches of TJSB Sahakari Bank. This strategic merger is expected to streamline services and expand market reach for the resulting institution.

“The Scheme will come into force with effect from May 04, 2026.”

This development is significant for financial practitioners involved in merger and acquisition processes within the banking sector. It highlights the ongoing consolidation trends among smaller banks and the regulatory landscape that governs such transactions.

Citations

  • Reserve Bank of India Press Release (2026) RBI/2026-2027/255
Practice Areas:banking

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