The Reserve Bank of India (RBI) today approved the amalgamation of the National Co-operative Bank Ltd., Bangalore (Karnataka) with Cosmos Co-operative Bank Limited (Maharashtra).
The scheme has been sanctioned in exercise of the powers conferred under Sub-Section (4) of Section 44A read with Section 56 of the
Banking Regulation Act, 1949, RBI said in a release.
The scheme will come into force with effect from January 06, 2025. The branches of NCBL will function as branches of Cosmos with effect from January 06, 2025, RBI added.
Earlier on December 31, RBI imposed a monetary penalty of Rs 8.30 lakh on Cosmos for non-compliance with certain directions issued earlier.
RBI said the bank had levied foreclosure charges on floating rate term loans, sanctioned to certain individual borrowers.
“The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty,” RBI said in a release on Friday.
