RBI imposes ban on New India Cooperative Bank, depositors prevented from withdrawing money

News Punjab 

14 feb 2025

The RBI has decided to impose several restrictions on the functioning of Mumbai-based New India Cooperative Bank. After this restriction by the RBI, bank depositors will no longer be able to withdraw their hard-earned money deposited in their accounts. New India Cooperative Bank will now neither be able to give any loans nor take any deposits. This restriction has come into effect for the next six months from the close of business on Thursday, February 13, 2025.

On Thursday, February 13, 2025, the Reserve Bank of India imposed several banking business related restrictions on the functioning of New India Cooperative Bank due to serious irregularities in the bank. After this strictness of RBI, New India Cooperative Bank will neither be able to give any loans to customers nor will it be able to accept deposits from customers. After this decision of RBI, the problems of bank depositors have increased. Bank account holders will not be able to withdraw money from their accounts. RBI has currently imposed this restriction on the bank for six months and during this period, efforts will be made to improve the condition of the bank. After six months, RBI will review the decision of restriction. 

The RBI said, “In view of the current liquidity position of the bank, it has been directed that no withdrawal of any amount from the depositor’s savings bank or current account or any other account should be allowed.” However, the bank has been allowed to spend on some essential items such as salaries of bank employees, rent and electricity bills.