The Reserve Bank of India (RBI) has taken a significant step in regulating the cooperative banking sector by issuing guidelines concerning the process of changing the names of co-operative banks. The RBI’s guidelines outline a structured approach to changing the name of a cooperative bank. Here are the key steps involved:
- Seeking No Objection Certificate (NOC):
A cooperative bank wishing to change its name must approach the Department of Supervision (DoS) of the relevant RBI Regional Office. In the case of cooperative banks falling under the jurisdiction of the Mumbai Office, they should approach the DoS, Central Office.
2. The bank must provide a clear and compelling reason for the name change, and this reason must be approved by the bank’s General Body. The format for stating these reasons is provided in Annex – 2.
NOC Requirement:
3. If there is a requirement for ‘confirmation’ from Central/State Government or other authorities for altering bye-laws under the applicable Co-operative Act/Rules, NOC from RBI under Section 49C, along with Section 56 of BR Act, will be necessary.
4. The bank must declare in writing the need for ‘confirmation’ under the applicable Co-operative Act/Rules while submitting its request to RBI.
5. Valid and Compelling Reasons:
Cooperative banks must ensure that their name change requests are supported by valid and compelling reasons. The RBI holds the discretion to assess whether the reasons submitted by the bank meet these criteria.
6. Approvals and Documentation:
After obtaining the NOC from the relevant RBI office, cooperative banks must approach the Central Registrar of Co-operative Societies (CRCS) or Registrar of Co-operative Societies (RCS) for amendment in their bye-laws.
The bank must provide the following documents to the RBI Regional Office:
- Approval of the Board of Directors
- Approval of the General Body of the Bank
- Amended bye-laws as approved by CRCS/RCS
- Copy of Certificate of Registration (CoR) issued by CRCS/RCS with the amended name
Original banking license.
