In a key regulatory move, the Reserve Bank of India (RBI) has issued a notification directing the exclusion of New India Co-operative Bank Ltd., Mumbai from the Second Schedule to the Reserve Bank of India Act, 1934.
The decision has been taken in exercise of the powers conferred under clause (b) of sub-section (6) of Section 42 of the RBI Act.
The development comes in the context of ongoing consolidation in the cooperative banking sector.
In August 2025, the RBI had approved the voluntary amalgamation of New India Co-operative Bank with the larger Saraswat Co-operative Bank Ltd. Under the merger scheme, which became effective from August 4, 2025, all assets, liabilities, branches and operations of New India Co-operative Bank were transferred to and vested in Saraswat Co-operative Bank. Depositors and customers of the erstwhile bank are now served by the merged entity.
With its formal exclusion from the Second Schedule, New India Co-operative Bank ceases to have scheduled bank status, a step consistent with its amalgamation and operational transition into Saraswat Co-operative Bank.
