The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks – Voluntary Amalgamation) Directions, 2025.
The following has been stated:-
• For the purpose of giving effect to the provisions of these Directions or to remove any difficulties in the application or interpretation of the provisions of these Directions, the RBI may, if it considers necessary, issue necessary clarifications in respect of any matter covered herein, and the interpretation of any provision of these Directions given by the RBI shall be final and binding
• In terms of Section 44A (3) of the Banking Regulation Act, 1949, a dissenting shareholder is entitled, in the event of the scheme being sanctioned by RBI, to claim within three months from the date of sanction, from the entity concerned, the value of the shares held by the shareholder in that entity, as determined by RBI when sanctioning the scheme. Such determination by the RBI of the value of the shares shall be final for all purposes. Provided that,
• If any shareholder of either of the UCBs (amalgamating or amalgamated UCBs) who has subscribed to shares as linkage with borrowing has outstanding dues in respect of credit facilities availed, such shareholder shall be entitled to the refund of the value of shares only after full and final settlement of all dues to the UCB concerned; and
• Both the amalgamated and amalgamating UCBs shall submit the details regarding the proposed treatment of shares held by shareholders of the amalgamated UCB and the rationale or detailed computations for the determination of the swap ratio.
[Notification no. RBI/DoR/2025-26/270 DoR.HOL.REC.189/16-13-100/2025-26]
