RBI Imposes Six-Month Restrictions on New India Co-operative Bank, Depositors Face Uncertainty

A large number of customers gathered outside New India Co-operative Bank in Mumbai, worried about their money, after the Reserve Bank of India (RBI) announced restrictions on withdrawals. The RBI took this step on February 13, 2025, due to financial concerns about the bank.

Key Restrictions Imposed by RBI:

• No withdrawals are allowed from savings, current, or any other accounts.
• The bank cannot issue new loans or investments without RBI approval.
• It can adjust deposits against loans under certain conditions.
• Essential expenses like employee salaries, rent, and utility bills may still be covered.

Why Did RBI Take This Step?

The RBI explained that these actions were necessary to protect customers’ money and address financial problems at the bank. These restrictions will last six months, subject to review.

What About Depositors’ Money?

• Customers cannot withdraw their funds for now.
• Eligible depositors can claim up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Customer Reactions

Many customers were shocked and upset. One depositor told ANI,
“We deposited money just yesterday, but no one warned us. Now they say we’ll get our money in three months, but we have EMIs and bills to pay. How will we manage?”

For now, customers will have to wait for further updates from RBI and bank authorities regarding their funds.