Page 17 - Banking Finance March 2025

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accounted for majority of the mergers
RBI revises Co-op banks' financial statements format in the last two decades, followed by
RBI stated that in terms of Section 29, read with Section 56 of the Banking Gujarat and Andhra Pradesh, the re-
Regulation Act, 1949, co-operative banks are required to prepare a balance port said.
sheet and profit and loss account as on the last working day of the year in
the Forms set out in the Third Schedule of the Banking Regulation Act, 1949. RBI bars New India Co-op
These forms were notified in 1981. Since then, there have been several
developments in the financial market as well as accounting standards and Bank from offering loans,
practices. deposits
The Reserve Bank has, accordingly, undertaken a comprehensive review of The Reserve Bank of India (RBI) barred
the formats of the financial statements of the co-operative banks and has New India Co-operative Bank from
released draft formats of the revised Forms and their schedules together granting or renewing loans, accepting
with instructions for the compilation of the balance sheet and profit and fresh deposits, make investment, dis-
loss account. bursing any payment for its liabilities or
selling any of its properties due to su-
pervisory concerns emanating from
RBI clears amalgamation of lation Act, 1949, per a central bank the recent material developments in
statement. The Scheme will come into
2 urban co-op banks force with effect from February 10, the bank, and to protect the interest
The Reserve Bank of India (RBI) has 2025 (Monday), whereby the branches of depositors of the bank, the regula-
approved two voluntary amalgam- of Goa-based UCB will function as tor said in a statement.
ations in the urban co-operative bank branches of TJSB Sahakari Bank. "Considering the bank's present liquid-
(UCB) space -- The Citizen Co-operative In a separate statement, RBI said the ity position, the bank has been directed
Bank (Vasco-De-Gama, Goa) with TJSB Scheme of Amalgamation of Pune not to allow withdrawal of any amount
Sahakari Bank (Thane, Maharashtra) from savings bank or current accounts
Commercial Co-operative Bank with
and Pune Commercial Co-operative Pimpri Chinchwad Sahakari Bank has or any other account of a depositor but
Bank (Satara, Maharashtra) with been sanctioned in exercise of the pow- is allowed to set off loans against de-
Pimpri Chinchwad Sahakari Bank ers conferred on it under the Banking posits," the statement said.
(Pune, Maharashtra). Regulation Act, 1949. Eligible depositors would be entitled to
RBI said the Scheme of Amalgamation Since 2004-05, the UCB sector has wit- receive deposit insurance claim
of The Citizen Cooperative Bank with nessed 156 mergers, including six in amount of their deposits up to a mon-
TJSB Sahakari Bank has been sanc- 2023-24, of which three were in etary ceiling of Rs. 5 lakh from the
tioned in exercise of the powers con- Maharashtra, two were in Telangana Deposit Insurance and Credit Guaran-
ferred on it under the Banking Regu- and one was in Gujarat. Maharashtra tee Corporation (DICGC).

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