RBI Approves NCBL-Cosmos Co-operative Bank Merger

The Reserve Bank of India (RBI) has sanctioned the amalgamation of National Co-operative Bank Ltd. (NCBL), Bangalore, with Cosmos Co-operative Bank Limited, Maharashtra.
The merger has been approved under Sub-Section (4) of Section 44A, read with Section 56 of the Banking Regulation Act, 1949. The scheme will come into effect from January 6, 2025, and NCBL’s branches will operate as Cosmos branches from the same date, according to an RBI release.
Earlier, on December 31, the RBI imposed a monetary penalty of Rs. 8.30 lakh on Cosmos Co-operative Bank for non-compliance with certain regulatory directions.
The penalty related to the bank charging foreclosure fees on floating rate term loans sanctioned to certain individual borrowers.