The Reserve Bank of India (RBI) has imposed strict restrictions on the operations of Mumbai-based New India Co-operative Bank. As a result, account holders will not be able to withdraw their deposited money, and the bank cannot grant loans or accept new deposits.
Banking Services Halted for Six Months
🔹 Restrictions effective from February 13, 2025.
🔹 The bank cannot issue loans, advances, or make any new investments.
🔹 Account holders will not be able to withdraw funds from savings or current accounts.
🔹 RBI will review the situation after six months.
Impact of Banking Restrictions
👉 Depositors cannot withdraw their money.
👉 The bank is prohibited from taking on new liabilities.
👉 All loan, advance, and investment activities are suspended.
👉 The bank is allowed to cover essential expenses like employee salaries, rent, and utility bills.
Deposit Insurance Protection
💰 Depositors are eligible for up to ₹5 lakh in insurance coverage under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme.
Why Did RBI Take This Step?
🔹 Serious financial irregularities led to RBI’s decision.
🔹 The restrictions aim to protect depositors’ interests and maintain banking sector stability.
Summary of Restrictions on New India Co-operative Bank
| Affected Service | Status |
|---|---|
| Cash Withdrawals | ❌ Not Allowed |
| New Loans / Advances | ❌ Restricted |
| Accepting Deposits | ❌ Not Allowed |
| Bank Operations | ⏳ Under RBI Control for 6 Months |
| Deposit Insurance | ✅ Up to ₹5 lakh |
These restrictions may cause inconvenience to New India Co-operative Bank’s customers, but RBI has given the bank six months to improve its financial situation.
