Account holders at the Maratha Sahakari Bank Limited (MSBL) can now breathe a sigh of relief as the officials have begun the talks to merge the bank with Pune-based Cosmos Bank. Confirmation regarding the same was shared by the district deputy registrar of the cooperative commissionerate, Anand Katke, who added that the proposal for the merger has been submitted with the Reserve Bank of India.
Discussions regarding the merger were held at the recently held meeting with RBI committee RBI. However, Cosmos Bank has to clarify a few matters before the merger can be approved. Queries related to the same were raised at the meeting and a decision will be announced later.
Information regarding the same was published in the Hindustan Times. The publication quoted Katke who said, “In this case, the merger plan has been finalized but it is yet to get a go ahead from the RBI. Merger plan is important with respect to the depositors as it explains how and when the depositors will get back their hard-earned money. It is basically the time frame and rate of interest that depositors will get once the bank is merged with another. All this has to be approved by the RBI of course,”
RBIS’s high-powered committee will be issuing a clarification post which the next steps of the merger can be planned. This process is expected to be completed in the next two months. Hindustan Times also quotes the Chairman of Cosmos Bank, Milind Kale, who said, ““We are awaiting a decision from the RBI for merging MSBL with Cosmos Bank, which is likely to happen soon.”
With this move, account holders of the MSBL will be able to continue the withdrawals which were restricted since 2016 due to operational restrictions placed by the RBI owing to the significant increase in bank’s non-performing assets. The restrictions were extended by the RBI after the initial six months. Restriction-related updates were last sent to the account holders on February 28, 2022, stating that the same were extended until May 2022.