Banking Regulation (Amendment) Act 2020 – Change in Name of Co-operative Banks
Introduction
The Banking Regulation (Amendment) Act (No. 39 of 2020) has made Sections 49B and 49C of the Banking Regulation Act, 1949 (BR Act) applicable to Co-operative Banks. These sections impose certain requirements and approvals from the Reserve Bank for any change in name or alteration of bye-laws of a Co-operative Bank.
Change in Name of Co-operative Banks
To change the name of a cooperative bank, the bank must follow the procedure outlined below:
Step 1: Approaching the Reserve Bank
The cooperative bank desiring a name change must submit a request to the Department of Supervision (DoS) of the concerned Regional Office of the Reserve Bank of India (RBI) for a no objection certificate (NOC) under Sections 49B and 49C of the BR Act. The bank must clearly state the reasons for the name change and obtain the approval of the General Body of the bank.
Step 2: NOC from RBI
If the alteration of bye-laws under the applicable Co-operative Act/Rules requires confirmation from the Central/State Government or any other authority, the cooperative bank must obtain an NOC from RBI under Section 49C read with Section 56 of the BR Act. The bank must provide a written declaration regarding the requirement for such confirmation.
Step 3: Valid and Compelling Reasons
Cooperative banks must ensure that their requests for a name change and alteration of bye-laws are supported by valid and compelling reasons. RBI has the discretion to assess the validity and compelling nature of the reasons provided by the bank.
Step 4: Approval from CRCS/RCS
After obtaining the NOC from the Reserve Bank, the cooperative bank must approach the Central Registrar of Co-operative Societies (CRCS) or Registrar of Co-operative Societies (RCS) for the amendment of their bye-laws. Once the approval is obtained from CRCS/RCS, the bank must submit the following documents to the concerned Regional Office of RBI:
Approval of Board of Directors
Approval of 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
Step 5: Compliance with Name Change
Even if the name change is due to a government notification, cooperative banks must follow the above process for changing the name of the bank. The bank must not display or operate with the amended name without updating the name on its banking license. The displayed name of the bank must strictly match the name on its banking license.
Step 6: Submission of Details to RBI Regional Office
To initiate the name change process, the cooperative bank must submit the following details to the RBI Regional Office:
Details to be submitted to Regional Office of RBI
| Sr. No. |
Particulars | Information submitted by the Bank |
| 1. | Name of the Bank & Address | |
| 2. | Licence No. and Licence issue date | |
| 3. | Area of Operation and No. of branches | |
| 4. | Name and Address of the office of registrar under whose purview the bank is registered | |
| 5. | Name the Co-operative Act under which the bank is registered as a society | |
| 6. | Proposed name of the Bank | |
| 7. | Reason for Change in Name of the bank (Please furnish supporting documents) | |
| 8. | Whether there are any restrictions imposed on the bank by RBI (Yes/No) If yes, give details |
|
| 9. | Whether applied / carried change in name of the bank in the past: (Yes/No) | |
| If yes : | ||
| i) Date of application to RBI | ||
| ii) Original Name of the bank | ||
| iii) Proposed name of the bank | ||
| iv) Reason for change | ||
| v) Date of CRCS/RCS Approval | ||
| vi) Change approved / rejected by RBI | ||
| vii) Date of RBI Approval / Rejection | ||
| viii) Reason for Rejection, give details | ||
| 10. | Whether change in name of the bank had been carried out without approval of RBI in the past: (Yes/No) | |
| 11. | If Yes, reason for not applying for RBI Approval | |
| 12. | If No, furnish details of RBI approval (Furnish copy) | |
| 13. | Whether CRCS/RCS approval was taken in case of previous change in name and date of approval (Furnish copy) |
| 14. | Is there any requirement for ‘confirmation’ from Central/State Government, one or more authority/authorities for alteration of bye-laws under the applicable Co- operative Act /Rules? (Yes/No) | |
| 15. | If yes: i) Give details of the requirement (Furnish copy) |
|
| Details to be submitted to Regional Office of the RBI at time of Regulatory approval | ||
| i) Confirm whether RBI NOC for alteration of bye-laws has been granted u/s 49C of BR Act, 1949 (Yes/No) | ||
| ii) If Yes – Give details of bank’s request and RBI NOC (Furnish copy) | ||
| iii) If No – Reason for not approaching RBI for grant of NOC u/s 49C of BR Act, 1949 | ||
| iv) Details of CRCS/RCS approval (Furnish copy) | ||
Note: Submission of Documents: Include all relevant documents mentioned in Step 4.
Conclusion
The guidelines provided in this circular govern the process of changing the name of a Co-operative Bank. Cooperative banks should adhere to these guidelines when seeking a name change, ensuring compliance with the applicable laws and obtaining the necessary approvals from RBI and CRCS/RCS. These guidelines will come into effect from the date of issue of this circular.
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