Reserve Bank of India

21.04.2016

Banking

Reserve Bank of India (Amalgamation of Private Sector Banks) Directions, 2016

MANU/RMIC/0070/2016

The Reserve Bank of India notified Master Directions regarding amalgamation of two banking companies or of a banking company and an NBFC. For both, amalgamation proposals have to be approved by two-third majorities of the total Board members, not just those forming quorum.

The Directions cover the procedure for amalgamation and enumerate the entitlements of dissenting shareholders.

Relevant

Report reviewing supervisory role of Boards MANU/DBOD/0040/2002
Guidelines for Merger /Amalgamation of Private Sector Banks MANU/DBOD/0034/2005

Tags : amalgamation private banks nbfc

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