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The Reserve Bank of India (RBI) has approved amalgamation of New India Co-operative Bank with Saraswat Co-operative Bank.
The Reserve Bank of India, in exercise of the powers conferred under sub-section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949, has sanctioned the Scheme of Amalgamation of New India Co-operative Bank Ltd., Mumbai with Saraswat Co-operative Bank Ltd., Mumbai.
The Scheme will come into force with effect from August 04, 2025 (Monday). All the branches of New India Co-operative Bank Ltd., Mumbai will function as branches of Saraswat Co-operative Bank Ltd., Mumbai with effect from August 04, 2025.
The New India Co-operative Bank had reported a big fraud of Rs.122 crores. In February 2025, the Economic Offences Wing of the Mumbai Police arrested Hitesh Mehta, former general manager and head of accounts at New India Cooperative Bank, for allegedly misappropriating ₹122 crore from the bank’s cash reserves.
Reserve Bank of India identified discrepancies in the bank’s cash records, revealing ₹112 crore missing from the Prabhadevi branch safe and ₹10 crore from the Goregaon branch safe. Following this, the RBI imposed withdrawal restrictions on the bank. The misappropriation took place over six years, between 2019 and 2025.
The Reserve Bank of India also superseded the board of New India Cooperative Bank for 12 months following financial and operational restrictions related to irregular lending practices.
The Economic Offences Wing of Mumbai Police arrested former New India Cooperative Bank CEO Abhimanyu Bhoan on 20 February 2025 in connection with the ₹122 crore scam.
In March 2025, the Economic Offences Wing seized properties worth ₹28 crore belonging to Hiren Bhanu, former Chairman of the bank, son of co-founder Ranjit Bhanu and an alleged mastermind of the ₹122 crore scam, under Section 106 of BNS. Hiren Bhanu and his wife, Gauri Bhanu, former Vice Chairperson of the bank, have fled abroad, and a Blue Corner notice has been issued for their extradition.
