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“The Reserve Bank of India has sanctioned the Scheme of 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 statement.
The merger would come into effect on January 6. From that day, the branches of The National Co-operative Bank will function as branches of Cosmos Co-operative Bank.
National Cooperative Bank Ltd. has a total of 13 branches— 12 in Bangalore and one in Mysore.
Mumbai-based Maratha Sahakari Bank (with 7 branches) and Sahebrao Deshmukh Sahakari Bank (with 11 branches) merged into Cosmos Bank in the financial year ended March 2024.
In July 2023, RBI had imposed business restrictions on The National Co-operative Bank Ltd and capped deposit withdrawal at ₹50,000 per account. The action was triggered by the weak financial position of the bank.
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