RBI Imposes Restrictions On New India Co-operative Bank, Customers Unable to Withdraw Funds

The Reserve Bank of India has imposed severe restrictions on Mumbai's New India Co-operative Bank due to detected irregularities. Now the customers of this are unable to withdraw funds, and the bank has been barred from offering new loans or deposits. However, depositors are covered under the Deposit Insurance Scheme, with up to Rs 5 lakh protected in case of the bank's collapse.

What all restrictions have been imposed?

Starting February 13, 2025, the Reserve Bank of India has imposed several restrictions on New India Co-operative Bank. The bank will be prohibited from issuing new loans or renewing existing loans. It will not be allowed to accept new investments or deposits, nor will it be able to make any payments. Additionally, the bank will not have the authority to sell any of its assets. These restrictions will remain in effect for a period of six months, beginning from February 13, 2025.

Why did the Reserve Bank impose restrictions?

The Reserve Bank has come to know that the financial condition of this bank is not good. RBI is raising questions about whether the bank has enough money or not. Therefore, people have been prohibited from withdrawing money from their savings account, current account or any other account. The Reserve Bank has said that these restrictions have been imposed to protect the interests of the customers.

Customers got upset:

This news of the ban by the Reserve Bank spread like wildfire on Friday. The customers of this bank reached their respective branches. Most of the people want to withdraw their money from the bank. But due to the ban by the Reserve Bank, they are not able to do so.

Many such photos and videos are coming out on social media in which a crowd of customers is seen outside the banks. The door of the bank is closed, due to which they are not able to enter it.