New India Co-operative Bank Merged with Saraswat Bank
Why in the news
RBI cleared the takeover of troubled NICB by Saraswat Bank under the voluntary merger framework for Urban Co-operative Banks (UCBs).
Key facts
- From August 4, 2025, NICB branches run as Saraswat branches.
- Moratorium led to frozen withdrawals; cause was governance failure and fraud by senior officials.
- Saraswat offered to absorb NICB to protect depositors and stabilise operations.
Significance
- Boosts Saraswat’s presence in Maharashtra, especially Mumbai.
- Protects depositors, resolves distressed assets and supports RBI’s clean-up through voluntary amalgamations.
Exam angle
- Acquirer: Saraswat; target: NICB; fraud: ₹122 crore.