Last Updated:
‘We deposited money just yesterday, but they did not say anything… They should have told us that this was going to happen… They are now saying that we will get our money within 3 months,’ says a customer of New India Co-operative Bank.
The RBI has imposed several restrictions on New India Co-operative Bank, including on withdrawal of funds by depositors, amid supervisory concerns.
Following the RBI’s restrictions on fund withdrawals from Mumbai-based New India Co-operative Bank, concerned depositors rushed to its branches, forming long queues outside the lender on Friday to get their money. Some of the concerned depositors said they deposited the money just yesterday (Thursday) but they were not informed about the issue.
The Reserve Bank of India (RBI) on Thursday imposed several restrictions on New India Co-operative Bank, including on withdrawal of funds by depositors, amid supervisory concerns.
Following this, customers got worried about their deposits in the banks. They flocked to the bank in the morning to form long queues to get their money. Account holders also gathered outside the Vijayanagar branch in Andheri, Mumbai.
“We deposited money just yesterday, but they did not say anything… They should have told us that this was going to happen… They are saying that we will get our money within 3 months… We have EMIs to pay, we have no idea how we will do all of that,” said Seema Waghmare, a customer of the New India Co-operative Bank, according to news agency ANI.
#WATCH | Mumbai: Seema Waghmare, a customer of the New India Co-operative Bank, says, “We deposited money just yesterday, but they did not say anything… They should have told us that this was going to happen… They are saying that we will get our money within 3 months… We… pic.twitter.com/wrIiQp472D— ANI (@ANI) February 14, 2025
Another customer told news agency IANS, “I woke up this morning and received a message at 9:20 am, I came here and they are saying that within 90 days, those with up to Rs 5 lakh will get their money back… There’s no assurance… We work hard to save money, and then the bank causes fraud.”
Mumbai, Maharashtra: On the restrictions imposed by the Reserve Bank of India (RBI) on New India Co-Operative Bank, a customer of the bank says, “I woke up this morning and received a message at 9:20 AM, I came here and they are saying that within 90 days, those with up to 5… pic.twitter.com/W0QNkKGxAI— IANS (@ians_india) February 14, 2025
The Reserve Bank’s Directions to New India Co-operative Bank, Mumbai came into force from the close of business on Thursday and would remain in force for a period of six months and are subject to review.
“Considering the bank’s present liquidity position, the bank has been directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor…,” the RBI said.
The lender, however, is allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions. It may incur expenditure in respect of certain essential items such as salaries of employees, rent, and electricity bills.
RBI further said as from the close of business on February 13, 2025, the bank shall not, without prior approval, grant or renew any loans and advances, make any investment, and incur any liability, including acceptance of fresh deposits.
“These directions are necessitated due to supervisory concerns emanating from the recent material developments in the bank, and to protect the interest of depositors of the bank,” the central bank said.
Further, eligible depositors would be entitled to receive deposit insurance claim amount of their deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
