Maratha Bank to merge with Cosmos Bank
June 17, 2022
The development will come as a big relief for MSBL’s 99,695 depositors who have been facing withdrawal restrictions since 2016 when the RBI restricted its banking operations in the light of ballooning non-performing assets.
Initially, the restrictions were for six months but they have since been extended by invoking provisions of Section 35A of the Banking Regulation Act, 1949.
The section allows the RBI, “To intervene to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company, or to secure the proper management of any banking company generally.” The latest restriction was communicated on February 28 this year, when the RBI decided to extend the restrictions until May 2022.