{"id":24516,"date":"2025-02-15T13:35:35","date_gmt":"2025-02-15T08:35:35","guid":{"rendered":"https:\/\/bigbreakingwire.in\/?p=24516"},"modified":"2025-02-15T14:05:37","modified_gmt":"2025-02-15T08:35:37","slug":"rbi-imposes-restrictions-on-new-india-co-operative-bank-due-to-supervisory-concerns","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/rbi-imposes-restrictions-on-new-india-co-operative-bank-due-to-supervisory-concerns\/","title":{"rendered":"RBI Imposes Restrictions on New India Co-operative Bank Due to Supervisory Concerns"},"content":{"rendered":"
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Reserve Bank of India (RBI) has placed strict restrictions on New India Co-operative Bank Limited, Mumbai, citing supervisory concerns arising from recent developments in the bank. These restrictions, issued under Section 35A read with Section 56 of the Banking Regulation Act, 1949, came into effect from the close of business on February 13, 2025, and will remain in force for six months.<\/p>\n\n\n\n

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Pic Credit: NDTV Profit <\/figcaption><\/figure>\n\n\n\n

Key Restrictions on the Bank<\/strong><\/p>\n\n\n\n

As per RBI\u2019s directive (Ref. No. CO.DOS.SED.No.D-01\/12-22-350\/2024-2025), the bank cannot do the following without prior RBI approval:<\/p>\n\n\n\n

Grant or renew loans and advances<\/p>\n\n\n\n

Make any new investments<\/p>\n\n\n\n

Accept fresh deposits<\/p>\n\n\n\n

Borrow funds or take on any new liabilities<\/p>\n\n\n\n

Disburse any payments, including those related to its obligations<\/p>\n\n\n\n

Sell, transfer, or dispose of any of its assets<\/p>\n\n\n\n

Moreover, withdrawals from savings, current, or any other accounts have been completely restricted due to the bank\u2019s current liquidity situation. However, depositors may set off their loans against their deposits under specific conditions mentioned in RBI\u2019s directive.<\/p>\n\n\n\n

What This Means for Depositors<\/strong><\/p>\n\n\n\n

Depositors of New India Co-operative Bank will still be eligible for deposit insurance coverage up to \u20b95 lakh, as per the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961. They can submit their claims after verification, and more details are available on the DICGC website (www.dicgc.org.in) or from bank officials.<\/p>\n\n\n\n

Not a License Cancellation<\/strong><\/p>\n\n\n\n

RBI clarified that these restrictions do not mean the bank\u2019s license has been canceled. The bank will continue operating under these limitations until its financial situation improves. The RBI will closely monitor developments and may modify the restrictions as needed to safeguard depositors\u2019 interests.<\/p>\n\n\n\n

Update<\/strong><\/p>\n\n\n\n

On Feb 14, customers gathered outside Mumbai\u2019s New India Co-operative Bank after RBI barred it from issuing new loans and suspended withdrawals for six months due to liquidity concerns. RBI said the move was needed to protect depositors but did not specify the exact issues.<\/p>\n\n\n\n

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X\/BigBreakingWire<\/a> <\/figcaption><\/figure>\n\n\n\n

Update<\/strong><\/p>\n\n\n\n

Mumbai Police have filed a case against Hitesh Praveenchand Mehta, the former General Manager of New India Co-operative Bank, for allegedly embezzling \u20b9122 crore from the bank.<\/p>\n\n\n\n

Mehta, who was in charge of the bank\u2019s branches in Dadar and Goregaon, is accused of misusing his position between 2020 and 2025 to commit financial fraud. The case was registered after the bank\u2019s Chief Accounts Officer filed a complaint at Dadar Police Station.<\/p>\n\n\n\n

Police believe Mehta may have had a partner in the crime. The case has now been handed over to the Economic Offences Wing (EOW) for further investigation. An FIR has been registered under sections 316(5) and 61(2) of the Bharatiya Nyaya Sanhita (BNS), according to ANI.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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