RBI clears National, Cosmos Co-operative Bank merger, effective January 6

The Reserve Bank of India (RBI) has approved the merger of National Cosmos Co-operative Bank with another cooperative bank, effective from January 6, 2025. The merger is seen as part of the RBI’s broader efforts to consolidate the cooperative banking sector and enhance its operational efficiency. The consolidation is expected to create a stronger financial institution, enabling better credit delivery to customers, especially in rural areas. The move is also in line with the government’s push to modernize the cooperative banking system. It is expected that the merger will lead to improved financial health for the new entity, ensuring its competitiveness in the banking market.