Reserve Bank of India has approved the merger of two more banks. After getting the green signal from RBI, New India Co-operative Bank Limited and Saraswat Co-operative Bank Limited will be merged. On August 1, the Reserve Bank approved the merger of these banks. After which the voluntary merger of New India Co-operative Bank Limited will take place in Saraswat Co-operative Bank Limited Mumbai. Actually, a scam of 122 crores was revealed in New India Co-operative Bank, after which it came on the radar of investigation agencies. After the investigation, the bank was locked and now it has been merged with Saraswat Bank.

Which two banks will be merged

After the approval of RBI, there has been a voluntary merger of New India Co-operative Bank Limited and Saraswat Co-operative Bank Limited. This merger has come into effect from 4 August 2025. The special thing is that these two banks of Mumbai are considered better banks in cooperative banking. Both the banks have been working in the cooperative banking sector for a long time, but now due to increasing pressure on the banks, the path of merger is being adopted. After this merger, i.e. from today, all the branches of New India Co-operative Bank Limited will function as branches of Saraswat Co-operative Bank Limited.

Why the decision was taken to merge the banks

Actually, New India Co-operative Bank was under regulatory supervision since February 2025. The bank officials were accused of embezzling Rs 122 crore. In view of the financial irregularities going on within the bank and the safety of the account holders, the Reserve Bank dissolved the board of New India Co-operative on February 14 itself. Many restrictions were imposed on the bank, withdrawal limits were set from the bank account, the bank accounts were being investigated. Now RBI has approved the merger of the bank.

How big is New India Co-operative Bank

Let us tell you that New India Co-operative Bank was doing better work in the cooperative sector. The bank has a long history. By March 2025, the total assets of New India Co-operative Bank were more than Rs 1100 crore. It had 27 branches, most of which were located in Mumbai. Due to the irregularities going on in the bank, RBI has now decided to merge the bank while protecting the interests of the account holders.

What will be the impact on account holders after the merger of banks

After the merger of the bank, there will be no effect on the deposits of the account holders, their accounts, loans and FDs, that is, the money deposited in the bank will remain the same. After this merger, the account holders will get better services, strong banking network and technologically advanced facilities. New India Co-operative Bank has been merged with Saraswat Bank, which is the largest bank in the cooperative sector. However, due to the merger of the bank, some paperwork may increase for the account holders of New India Co-operative Bank. There may be changes from passbook to new checkbook, new IFSC code.

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Issued under the powers conferred under Section 23A(1) of the Regional Rural Banks Act, 1976, the notification states that the concerned RRBs will merge to form one entity, which will inherit all their assets, rights, powers, obligations and duties.

The efficiency of RRBs will increase

The new structure aims to increase the efficiency of RRBs and reduce competition among the public sector banks that sponsor them. The move is part of the finance ministry’s “one state, one RRB” policy, first reported by Business Standard in September 2024.

RRBs will be merged in these states

The notification details the merger of several banks in different states with the aim of creating larger and more robust regional institutions. In Andhra Pradesh, Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank and Andhra Pradesh Grameena Vikas Bank will be merged to form Andhra Pradesh Grameena Bank. Its head office will be in Amravati and it will be sponsored by Union Bank of India. In Bihar, South Bihar Gramin Bank and North Bihar Gramin Bank will be merged to form Bihar Gramin Bank, whose head office will be in Patna and it will be sponsored by Punjab National Bank.

In Gujarat, Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank will be merged to form Gujarat Gramin Bank with its head office in Vadodara and sponsored by Bank of Baroda. Similarly, in Jammu and Kashmir, J&K Gramin Bank and Ellaquai Dehati Bank will be merged to form Jammu & Kashmir Gramin Bank with its head office in Jammu and sponsored by Jammu & Kashmir Bank Limited.

In Karnataka, Karnataka Vikas Gramin Bank and Karnataka Gramin Bank will be merged to form Karnataka Gramin Bank, whose head office will be in Ballari and it will be sponsored by Canara Bank. In Madhya Pradesh, Madhya Pradesh Gramin Bank and Madhyanchal Gramin Bank will be merged to form Madhya Pradesh Gramin Bank, whose head office will be in Indore and it will be sponsored by Bank of India.

In Maharashtra, Maharashtra Gramin Bank and Vidarbha Konkan Gramin Bank will be merged to form Maharashtra Gramin Bank with its head office at Chhatrapati Sambhajinagar and sponsored by Bank of Maharashtra. In Odisha, Odisha Gramya Bank and Utkal Gramin Bank will be merged to form Odisha Gramin Bank with its head office at Bhubaneswar and sponsored by Indian Overseas Bank.

In Rajasthan, Rajasthan Marudhara Gramin Bank and Baroda Rajasthan Regional Rural Bank will be merged to form Rajasthan Gramin Bank, whose head office will be in Jaipur and it will be sponsored by State Bank of India.

In Uttar Pradesh, Baroda UP Bank, Aryavart Bank and Prathama UP Gramin Bank will be merged to form Uttar Pradesh Gramin Bank, whose head office will be in Lucknow and it will be sponsored by Bank of Baroda.

Eventually, in West Bengal, Bangiya Gramin Vikas Bank, Paschim Banga Gramin Bank and Uttarbanga Regional Rural Bank will be merged to form West Bengal Gramin Bank with its head office in Kolkata and sponsored by Punjab National Bank.

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