RBI clears National, Cosmos Co-operative Bank merger, effective January 6

The Reserve Bank of India (RBI) on Friday approved the merger of National Co-operative Bank with Cosmos Co-operative Bank, effective from January 6, 2025.

 

“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. The Scheme will come into force with effect from January 6, 2025," the RBI stated in its press release.

 

The branches of The National Co-operative Bank, Bangalore (Karnataka), will function as branches of Cosmos Co-operative Bank Limited (Maharashtra) with effect from January 6, 2025.

 

National Co-operative Bank has 13 branches. In FY24, Maratha Sahakari Bank and Sahebrao Deshmukh Sahakari Bank also merged into Cosmos Bank.

 

In July 2023, the RBI imposed restrictions on the National Co-operative Bank Ltd. and limited deposit withdrawals to Rs 50,000 per account due to the bank's weak financial performance. These restrictions were repeatedly extended up to January 24, 2025.