Current Affairs - Bills and Acts - Discussion

The Reserve Bank of India (RBI) granted its approval for the merger of New India Co-operative Bank Ltd (NICBL) with Saraswat Co-operative Bank under Section 44A(4) of the Banking Regulation Act, 1949. This section specifically deals with the amalgamation of co-operative banks, providing a legal framework for such mergers. The approval followed consent from shareholders of both banks and submission of a merger proposal to the RBI. Alongside Section 44A(4), Section 56 of the Act was also invoked, which pertains to the application of certain provisions of the Act to co-operative banks. This ensures regulatory oversight and legal compliance during such consolidations.