Panic Grips New India Co-operative Bank Customers as RBI Imposes Strict Restrictions

Customers of New India Co-operative Bank in Mumbai are in distress after the Reserve Bank of India (RBI) imposed severe restrictions on the bank's operations on February 13, 2025. The RBI has barred the bank from issuing new loans, accepting deposits, or allowing withdrawals for six months due to supervisory concerns and liquidity issues. Anxious depositors gathered outside bank branches on February 14, expressing worry about meeting financial obligations like EMIs. The RBI cited "recent material developments" for its decision, aimed at protecting depositors' interests. Eligible depositors can claim up to Rs 5 lakh through deposit insurance, but many fear prolonged financial strain during the restriction period.

 

Source: Reserve Bank of India and New India Co-operative Bank Customer Statements