Master Direction – Amalgamation of Urban Cooperative Banks, Directions, 2020
This Master Direction outlines the guidelines for the amalgamation of Urban Cooperative Banks (UCBs) in India.
The direction is applicable to all UCBs registered under the Banking Regulation Act, 1949, and the Maharashtra Cooperative Societies Act, 1960.
The scope of the direction includes the approval process, procedure for application, entitlement of dissenting shareholders, sanction of the scheme of amalgamation, incentives, and repeal of other provisions.
The direction consists of six chapters and two schedules. Chapter I deals with preliminary matters, Chapter II with approval by the Board of Directors, and Chapter III with the amalgamation of UCBs.
Chapter III-A outlines the procedure for application for amalgamation, while Chapter III-B deals with the entitlement of dissenting shareholders. Chapter IV covers the sanction of the scheme of amalgamation.
Chapter V provides incentives to amalgamating UCBs, and Chapter VI deals with repeal and other provisions. The direction also includes two schedules: Schedule A, which provides an indicative list of information to be sent with the application for amalgamation, and Schedule B, which is not specified.
Key aspects of the direction include:
Capital reorganization, deposits, transfers, and vesting, issue of shares, accounting treatment, valuations, employee-related matters, and legal proceedings.
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Download: Master Direction – Amalgamation of Urban Cooperative Banks, Directions, 2020