The Reserve Bank of India (RBI) on November 28, 2025 issued the Reserve Bank of India (Commercial Banks – Voluntary Amalgamation) Directions, 2025, providing a consolidated regulatory framework governing voluntary amalgamations involving commercial banks. The Directions lay down clear procedural requirements for board and shareholder approvals, RBI scrutiny and sanction, treatment of dissenting shareholders, and norms governing promoter share transactions during the amalgamation process.
The framework specifies definitions of amalgamating and amalgamated entities, outlines the scope of permitted amalgamations—including bank-to-bank mergers, mergers involving SFBs, LABs, PBs, and NBFC–bank combinations—and ensures adherence to statutory provisions under Sections 44A and 35A of the Banking Regulation Act, 1949. It mandates transparent processes, due diligence, and compliance with public-interest considerations while standardising procedures across the banking system.
[Notification No. RBI/DoR/2025-26/146]
