In a letter written to the Chairmen, MDs & CEOs of all the Urban Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks, the RBI has laid down a procedure to be followed for any change in name by a Co-operative Bank.
Titled “Banking Regulation (Amendment) Act 2020 – Change in Name of Co-operative Banks”, the letter reads “Pursuant to the notification of the Banking Regulation (Amendment) Act (No. 39 of 2020), Sections 49B and 49C of Banking Regulation Act, 1949 (‘BR Act’) are applicable to Co-operative Banks. In terms of Section 49B, the Central Registrar of Cooperative Societies (CRCS)/Registrar of Cooperative Societies (RCS) shall not signify its approval to the change of name of any co-operative bank unless the Reserve Bank certifies in writing that it has no objection to such change.”
“Further, in terms of Section 49C, no application for the confirmation of the alteration of bye-laws of a co-operative bank shall be maintainable unless the Reserve Bank certifies that there is no objection to such alteration”, says the RBI.
In short, the RBI has made it clear that the Central Registrar power in giving approval to the name change will no longer be final unless it is certified by the apex regulator bank, which is RBI in this case.