The Reserve Bank of India (RBI) has granted approval for the voluntary Scheme of Amalgamation of Maratha Sahakari Bank with The Cosmos Co-operative Bank. The merger is set to take effect from May 29, 2023, as announced by the RBI. This decision comes after Maratha Sahakari Bank, established in 1946 with seven branches in Mumbai, had been placed under regulatory directions by the central bank since August 31, 2016. The Scheme has been sanctioned under the authority of the Banking Regulation Act, 1949.
Background
The Maratha Sahakari Bank, a prominent co-operative bank in Mumbai, has faced regulatory intervention by the RBI since 2016. Under the Directions imposed by the central bank, the bank’s operations were closely monitored and regulated. The decision to merge with The Cosmos Co-operative Bank represents a strategic move to ensure the stability and continued services of the Maratha Sahakari Bank.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
Approval by RBI
In a statement, the RBI confirmed that the voluntary Scheme of Amalgamation between Maratha Sahakari Bank and The Cosmos Co-operative Bank has received the necessary sanction. The regulatory approval has been granted under the provisions of Section 44A(4) read with Section 56 of the Banking Regulation Act, 1949. The RBI’s decision reflects its commitment to safeguarding the interests of depositors and ensuring the stability of the banking sector.
Effective Date and Operations
With the Scheme set to come into force from May 29, 2023, all branches of Maratha Sahakari Bank Ltd., located in Mumbai, will function as branches of The Cosmos Co-operative Bank Limited, headquartered in Pune, Maharashtra. The merger will allow customers of Maratha Sahakari Bank to seamlessly transition their banking activities to The Cosmos Co-operative Bank, ensuring minimal disruption and uninterrupted services.
The Cosmos Co-operative Bank
The Cosmos Co-operative Bank, an urban co-operative bank operating across multiple states, boasts a network of 140 branches. With deposits and advances amounting to ₹16,522 crore and ₹12,293 crore, respectively, as of March-end 2022, The Cosmos Co-operative Bank has a strong financial position and a well-established presence in the co-operative banking sector.
Benefits of the Merger
The merger of Maratha Sahakari Bank with The Cosmos Co-operative Bank offers several advantages for both institutions and their customers. It ensures the continuity of banking services for Maratha Sahakari Bank’s customers, safeguarding their interests and deposits. Additionally, the merger strengthens the financial position and expands the customer base of The Cosmos Co-operative Bank, contributing to its growth and stability in the co-operative banking sector.
Also Read: Blackstone acquires International Gemological Institute
Find More Business News Here
