Notification regarding Amalgamation of District Central Co-operative Banks (DCCBs) with the State Co-operative Bank (StCB) with Guidelines (Notification dated 24.05.2021) –RBI
View PdfNotification regarding Amalgamation of District Central Co-operative Banks (DCCBs) with the State Co-operative Bank (StCB) with Guidelines (Notification dated 24.05.2021) –RBI
- The Banking Regulation (Amendment) Act, 2020 (39 of 2020) has been notified for the State Co-operative Banks (StCB) and District Central Co-operative Banks (DCCBs) with effect from, April 1, 2021 vide Notification dated December 23, 2020 issued by Government of India. With the issue of the notification, the amalgamations of the above banks have to be sanctioned by Reserve Bank of India in terms of the provisions of the Section 44-A read with Section 56 of the Banking Regulation Act, 1949.
- In recent past, a few State Governments approached RBI for amalgamation of DCCBs with the StCB as a two-tier Short-term Co-operative Credit Structure (STCCS).In order to help the States contemplating delayering their STCCS, guidelines are being issued (refer attachment) to bring the requirements and indicative benchmarks for the amalgamation of DCCBs with the StCB to the notice of all stakeholders. These guidelines will also apply for amalgamation of one or more DCCBs in a State with the StCB or amalgamation of one DCCB with another.
