Due to supervisory concerns, the Reserve Bank of India (RBI) has clamped restrictions on granting new loans or allowing deposit withdrawals for the New India Co-operative Bank, based in Mumbai. RBI restrictions on New India Co-operative Bank impact customers.
Depositors eligible under the deposit insurance scheme can claim amounts up to ₹5 lakh and have been advised to file their claims with the bank. The bank had deposits of ₹2,436 crores as of March 2024.
The Reserve Bank of India (RBI) has imposed restrictions on the bank, effective from the close of business on 13 February 2025. It is prohibited from granting or renewing loans, making new investments, accepting fresh deposits, disbursing payments, or selling its assets.
These measures were implemented due to concerns over the bank’s liquidity, leading the RBI to restrict fund withdrawals from savings, current, and other deposit accounts. The regulator stated that these steps are necessary to safeguard depositors’ interests.
The RBI will continue monitoring the bank’s financial condition and may revise the restrictions as needed. The directives will remain in force for six months from 13 February 2025.
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