General Meeting okays merger of two cooperative banks in India
NEW DELHI– In the Special General Meeting held recently the Cosmos Cooperative Bank Ltd., received approval from members with majority votes for merger of the Sahebrao Deshmukh Sahakari Bank Ltd., and Maratha Sahakari Bank Limited [MSBL].
According to the Indian Cooperative, Cosmos Bank’s Chairman CA Milind Kale addressed the meeting in which he informed members of Cosmos Bank’s plan to expand in the near future.
With the merger of the two mentioned banks expansion of Cosmos Bank in Mumbai will be able to provide better services to clients, members attending the general meeting were told.
Chairman Kale also stated that the Mumbai-based Sahebrao Deshmukh Co-op Bank Ltd., has 11 branches. While Maratha Sahakari Bank Ltd., has seven branches.
The proposal for the said merger will be sent to The Reserve Bank for further approval.
The development comes as a big relief for MSBL’s 99,695 depositors who have been facing withdrawal restrictions since 2016 when the RBI restricted its banking operations in the light of ballooning non-performing assets.
Initially, the restrictions were for six months but they have since been extended by invoking provisions of Section 35A of the Banking Regulation Act, 1949.
The section allows the RBI, “To intervene to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company, or to secure the proper management of any banking company generally.”
Meanwhile, under the leadership of former Union Minister Suresh Prabhu, members preparing the draft of the new National Cooperative Policy recently met the Reserve Bank of India [RBI] Governor Shaktikanta Das in Mumbai.
During the meeting, the team led by Prabhu briefed Das about the draft on the National Cooperative Policy being prepared by the panel to strengthen the cooperative sector in India, says the Indian Cooperative.
The draft offers the roadmap for the cooperative sector in the next 25 years, thus 2024-2027.
New apex bodies proposed in the draft policy include; Development Financial Institution, National Cooperative University, Centre for Excellence, National Cooperative Recruitment Board, National Cooperative Audit and Accounting Board, National Export Multi-State Cooperative Society, National Cooperative Tribunal, and others.
According to Union Minister Amit the New Cooperative Policy aims to have a uniform cooperative policy across states.
He also said that representatives of every state have been included on the panel spearheading the writing of the new policy for the cooperative sector in the country.
https://thecooperator.news/indian-ucbs-to-be-brought-at-par-with-commercial-counterparts/
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