New India Cooperative Bank’s Merger with Saraswat Cooperative Bank Approved by RBI
Moneylife Digital Team 04 August 2025
Reserve Bank of India (RBI) has approved the voluntary merger of New India Cooperative Bank Ltd with Saraswat Cooperative Bank Ltd. The merger will take effect from 4 August 2025, as per the RBI’s notification issued on 1 August 2025.
 
The approval was granted by RBI under sub-section (4) of Section 44A, read with Section 56 of the Banking Regulation Act, 1949. With this move, all existing branches of New India Cooperative Bank will be integrated into Saraswat Cooperative Bank and continue operations under the latter’s name from the effective date.
 
In July 2025, Saraswat Co-operative Bank had voluntarily approached the RBI, seeking permission to take over New India Cooperative Bank as part of efforts to strengthen the urban co-operative banking sector.(Read: Saraswat Bank Seeks RBI Nod To Take Over Troubled New India Cooperative Bank)
 
New India Cooperative Bank has been under regulatory scrutiny since February 2025, following a Rs122-crore embezzlement scandal involving senior management.
 
In light of these serious financial irregularities and governance concerns, RBI had superseded the bank’s board on 14 February 2025, and appointed an administrator to manage its affairs for a year.(Read: New India Cooperative Bank: RBI Restricts Loans, Withdrawals for 6 Months, Appoints Administrator After Dismissing Board)
 
As of March 2025, New India Cooperative Bank had total assets exceeding Rs1,100 crore and operated 27 branches, including 17 within Mumbai. Amid growing concerns about its financial health, RBI had also imposed restrictions on withdrawals to protect depositors, limiting the amount that could be withdrawn.
 
This merger is aimed at ensuring continued banking services for customers and safeguarding the interests of depositors by integrating the troubled bank into a stronger institution.
 
You may also want to read…
 
 
Comments
Free Helpline
Legal Credit
Feedback