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New India Co-operative Bank: Customers Unable To Withdraw Funds Under RBI Restrictions—What Happens to Your Loans, Deposits, Withdrawals, and Locker Services?
RBI Restrictions On New India Co-operative Bank: The former General Manager of New India Co-operative Bank in Mumbai, Hitesh Praveenchand Mehta, has been booked for allegedly embezzling Rs 122 crore from the bank's treasury. The complaint states that Mehta withdrew the funds from the Dadar and Goregaon branches between 2020 and 2025.
RBI's Transaction Ban
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The Reserve Bank of India (RBI) has imposed a six-month ban on Mumbai-based New India Co-operative Bank Ltd due to lending irregularities.
Customer Withdrawal Limits
Customers face withdrawal restrictions, but deposits up to Rs 5 lakh are protected under the Deposit Insurance Scheme (DICGC).
Account Holders Rush To Branches
Following the RBI’s overnight order, hundreds of customers flocked to the Mira Road East branch to withdraw cash.
Strict Banking Restrictions
The restrictions effective February 13, 2025, the bank cannot issue or renew loans, accept new deposits, make payments, or sell assets.
Loan Repayments Continue
Borrowers can still repay loans and may request to set off deposits against outstanding loans as per RBI conditions.
Financial Crisis & RBI Intervention
The bank reported losses of Rs 22.78 crore in FY24 and Rs 30.75 crore in FY23, with Rs 2,436 crore in deposits and Rs 1,175 crore in advances.
Service Disruptions And Customers Can Access Internet Banking
The bank discontinued mPassbook & Visa/MasterCard issuance, issued locker notices, but customers can still access internet banking, UPI, NEFT, RTGS, and WhatsApp Banking. (Image Credit: Freepik, File Photo)
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