RBI Approves Merger of New India Co-operative Bank with Saraswat Bank

In a significant move for India’s cooperative banking sector, the Reserve Bank of India (RBI) has approved the merger of New India Co-operative Bank with Saraswat Co-operative Bank, the largest urban co-operative bank in the country. The merger will officially take effect from August 4, 2025.

Key Details of the Merger

Under the approved Scheme of Amalgamation,

• Saraswat Bank will take over all assets and liabilities of New India Co-operative Bank.
• All branches of New India Co-operative Bank will now function as Saraswat Bank branches.
• Customers and depositors of New India Co-operative Bank will be treated as customers of Saraswat Bank, with their interests fully protected.
• This step is expected to provide greater stability, enhanced services, and stronger financial backing for customers of the merged entity.

Approval Process

The merger followed approvals from both banks’ shareholders,

• Saraswat Bank’s Special General Meeting on July 22, 2025 endorsed the amalgamation.
• New India Co-operative Bank’s Annual General Meeting also gave its nod, after which the proposal was sent to the RBI for the final approval.
• With RBI’s green light, the transition will commence smoothly from the scheduled date.

Impact on Customers

For depositors and account holders of New India Co-operative Bank, the merger ensures,

• Seamless transition of accounts to Saraswat Bank.
• Continued safety of deposits, backed by the larger financial base of Saraswat Bank.
• Access to a wider branch and service network across the country.
• The move is expected to increase customer confidence while strengthening the cooperative banking ecosystem.

Significance of the Move

This merger highlights the RBI’s proactive approach in ensuring,

• Strengthening of cooperative banks through consolidation.
• Protecting depositor interests amid challenges faced by smaller cooperative banks.
• Creating stronger, more competitive institutions capable of supporting financial inclusion in urban and semi-urban areas.