Features of RBI guidelines applicable for Bank Mergers

1. Applicability: apply to all private sector banks licensed to operate in India by the RBI and to the
Non-Banking Financial Companies (NBFC) registered with the RBI and as appropriate to public sector
banks.
2. Scope: An amalgamation of two banking companies and an amalgamation of an NBFC with a
banking company.
3. Specific directions to boards of banks for consideration prior to initiating the amalgamation of the
banks.
4. Enable the Reserve Bank of India to consider the application for sanction, the amalgamating and
the amalgamated banking companies shall submit to the Reserve Bank the information and
documents.
5. Set norms for buying and selling of shares of promoters of banks.