New India Co-operative Bank Excluded from RBI’s Second Schedule

The Reserve Bank of India has announced the exclusion of New India Co-operative Bank Ltd., Mumbai from the Second Schedule to the Reserve Bank of India Act, 1934. The change follows Notification CO.DOR.RAUG.No.S7907/08.27.498/2025-26 issued on January 06, 2026.

The notification was subsequently published in the Gazette of India dated January 29, 2026. The regulatory development has been confirmed through the RBI’s official press release.

RBI Notification and Gazette Publication

The RBI states that the exclusion was formally notified on January 06, 2026. The Gazette of India publication dated January 29, 2026, provides the statutory confirmation of the update.

This regulatory action removes the bank from the list of Scheduled Banks maintained under the RBI Act. The change has been issued under the authority provided to the central bank for supervising and updating the status of regulated entities.

Background Of The Bank and Sector Context

New India Co-operative Bank has been part of the country’s cooperative banking network, operating primarily in Mumbai. The exclusion comes against the backdrop of consolidation trends in the cooperative banking sector.

Reports indicate that the bank had earlier been approved for amalgamation with Saraswat Co-operative Bank in 2025. These developments reflect broader regulatory efforts to strengthen financial stability within the cooperative banking ecosystem.

Significance Of Removal from The Second Schedule

Banks listed in the Second Schedule enjoy Scheduled Bank status, allowing access to RBI liquidity support facilities. Exclusion from the Schedule removes eligibility for central bank borrowing windows and participation in certain clearing arrangements.

The bank therefore ceases to be recognised as a Scheduled Bank as a result of this notification. This change reflects regulatory reassessment of the bank’s status following its amalgamation-related circumstances.

Regulatory Context and Previous Actions

Prior to the exclusion, the RBI had undertaken various supervisory and regulatory actions applicable to the institution. The cooperative banking sector has witnessed multiple interventions aimed at strengthening governance and depositor protection.

In this case, the exclusion aligns with earlier regulatory steps involving restructuring and oversight. The RBI continues to monitor cooperative banks closely under its statutory responsibilities.

Read More: RBI Purchases 47% Of FY26 Government Bond Issuances to Support Banking Liquidity.

Conclusion

The exclusion of New India Co-operative Bank Ltd., Mumbai from the Second Schedule formalises a key regulatory decision by the RBI. The change follows the notification issued on January 06, 2026, and its publication in the Gazette on January 29, 2026.

The decision brings the bank’s Scheduled status to an end in accordance with existing regulatory provisions. This update forms part of ongoing developments within the cooperative banking sector and its supervisory framework.

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