RBI Restricts New India Co-operative Bank Over Financial Irregularities

The Reserve Bank of India has imposed a six-month ban on withdrawals and transactions, causing widespread panic among customers across Mumbai and surrounding areas.

The Reserve Bank of India (RBI) has restricted New India Co-operative Bank's operations, barring withdrawals, new loans, and deposits due to supervisory and financial concerns.
Customers rushed to the bank's branches in Mumbai and nearby regions, fearing for their savings, with many expressing frustration over the lack of prior warning.
Deposits up to ₹5 lakh are insured and will be reimbursed within 90 days, but uncertainty looms for larger deposits, leaving many depositors in financial distress.
The RBI has appointed Shreekant, a former State Bank of India official, as administrator, alongside a committee of advisors, to oversee the bank's operations for 12 months.
The restrictions, which will last six months subject to review, highlight broader issues with cooperative banks, including poor governance and lack of transparency.