RBI approves merger of New India Co-operative Bank with Saraswat Bank

Current Context: On August 1, 2025, the Reserve Bank of India (RBI) approved the voluntary merger of New India Co-operative Bank Ltd. with Saraswat Co-operative Bank Ltd., effective from August 4, 2025.

Key Highlights

• Approved under Section 44A(4) and Section 56 of the Banking Regulation Act, 1949.
• All 27 branches of New India Co-operative Bank will now operate as Saraswat Bank outlets.
• Over 1.22 lakh depositors impacted by earlier withdrawal restrictions will now be served by Saraswat Bank.
• The merger follows a ₹122 crore embezzlement scandal at New India Co-operative Bank, which led to RBI appointing an administrator in February 2025.
• This move aims to stabilize the urban co-operative banking sector and protect depositor interests by integrating a financially troubled bank into India’s largest urban co-operative bank.

Question:

Q.1 On which date did the RBI (Reserve Bank of India) approve the voluntary merger of New India Co-operative Bank Ltd. with Saraswat Co-operative Bank Ltd.?
a) August 1, 2025
b) August 4, 2025
c) February 2025
d) July 30, 2025

Answer: a) On August 1, 2025, the Reserve Bank of India (RBI) approved the voluntary merger of New India Co-operative Bank Ltd. with Saraswat Co-operative Bank Ltd., effective from August 4, 2025.