RBI Okks schedule of Samalgamation of fraud hit New India Co-op Bank with Saraswat Co-op Bank

The schedule will take effect from August 4 | Photocredit: –

The Reserve Bank of India (RBI) has sanctioned the regulation of fraud hit New India Co-Operative Bank (NICB) with Saraswat Co-Operative Bank (SCB).

The schedule will take effect from August 4, with all NICB branches as SCBs branches with effect from this date.

Saraswat Co-Operative Bank, in a statement, said that it will take over all assets and obligations of NICB after the merger.

“Customers, including deposits of NICB, are treated as Saraswat Bank customers with effect from 4 August 2025 and their interests will be fully protected,” according to the statement.

At the end of March 2025, SCB, the largest urban cooperative bank in India, and NICB had total cases (deposits plus advances) of £ 91,800 crore and £ 3,500 crore respectively.

The largest UCB in India, last month, had approached RBI for approval to acquire NICB, whose Networth had become negative, under the voluntary amalgamation scheme of the Central Bank for UCBS.

With the latest acquisition, SCB has made its eighth acquisition of a stressed Urban Co -operative Bank (UCB) established SCB in Mumbai for two decades.

The Pearl of Strings Acquisition strategy of the bank started the takeover of Maratha Mandir Co-Operative Bank (March 2006).

In 2007, the four UCBS-Mandvi Co-Operative Bank, Annasaheh Karale Janata Sahakari Bank, Murgha Rajendra Sahakari Bank and Nashik People’s Cooperator’s cooperator’s co-operators acquired.

Furthermore, it acquired two UCBs-South Indian Co-Operative Bank (2008) and Kolhapur Maratha Coöperatief Bank (2009).

NICB came in a tight place in February 2025 after abuse of funds collected £ 122 crore was detected during RBI inspection.

Published on August 1, 2025