Bank merger: The Reserve Bank of India (RBI) has granted approval for the amalgamation of Fincare Small Finance Bank with AU Small Finance Bank Ltd. The sanctioned Scheme of amalgamation falls under the authority vested in the RBI through sub-section (4) of Section 44A of the Banking Regulation Act, 1949. The effective date for this amalgamation is set for April 01, 2024.

“The Reserve Bank of India has sanctioned the Scheme of Amalgamation of Fincare Small Finance Bank Ltd. (Transferor Bank) with AU Small Finance Bank Ltd. (Transferee Bank),” the release stated on Monday. 

As per the approved scheme, all branches of Fincare Small Finance Bank will seamlessly transition to operate as branches of AU Small Finance Bank from April 01, 2024. 

This move is a significant step in the banking sector, aligning with regulatory processes to streamline and enhance the efficiency of financial institutions.