- The Reserve Bank of India (RBI) has placed restrictions on New India Co-operative Bank, located in Mumbai, preventing it from issuing new loans or allowing withdrawals of deposits due to ongoing supervisory concerns.
- Eligible depositors can claim deposit insurance up to Rs 5 lakh, according to the deposit insurance scheme.
- Depositors have been instructed to submit their claims with the bank.
- As of the end of March 2024, the co-operative bank had deposits totaling Rs 2436 crores.
- The RBI announced that starting from the close of business on February 13, 2025, New India Co-operative Bank is prohibited from granting or renewing any loans or advances.
The Reserve Bank of India (RBI) has placed restrictions on New India Co-operative Bank, located in Mumbai, preventing it from issuing new loans or allowing withdrawals of deposits due to ongoing supervisory concerns.
Eligible depositors can claim deposit insurance up to Rs 5 lakh, according to the deposit insurance scheme. Depositors have been instructed to submit their claims with the bank. As of the end of March 2024, the co-operative bank had deposits totaling Rs 2436 crores.
The RBI announced that starting from the close of business on February 13, 2025, New India Co-operative Bank is prohibited from granting or renewing any loans or advances. It is also barred from making new investments or accepting fresh deposits, and it cannot disburse any payments. Additionally, the bank is not permitted to sell any of its properties.
This action comes in response to concerns regarding the bank’s liquidity position, leading the RBI to restrict withdrawals from savings, current, or any other depositor accounts. The regulator stressed that these measures are intended to safeguard the interests of depositors.
The RBI will keep a close watch on the bank’s situation and will adjust these directives as necessary to protect depositors’ interests. These restrictions will be in place for a period of six months starting from February 13, 2025.
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