Sat Feb 15 14:42:37 UTC 2025: **RBI Imposes Restrictions on New India Co-operative Bank; Depositors Face Withdrawal Limits**
**Mumbai, India** – The Reserve Bank of India (RBI) has imposed significant restrictions on the New India Co-operative Bank in Mumbai, prompting concerns among its depositors. The restrictions, effective immediately, limit withdrawals for six months. This decision follows the bank’s continuous financial losses over the past two fiscal years. The bank reported losses of ₹23 crore in FY24 and ₹31 crore in FY23.
The RBI’s action is a precautionary measure, not a revocation of the bank’s license. While depositors cannot withdraw funds from savings, current, or other accounts, the bank can still cover essential expenses like employee salaries and utility bills. The RBI clarified that the restrictions aim to address the bank’s current liquidity issues and that the situation will be continuously monitored.
The RBI has stated that depositors are eligible to claim insurance coverage up to ₹5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC). This means that despite the withdrawal restrictions, eligible depositors can recover a significant portion of their deposits.
News of the RBI’s action led to crowds gathering outside bank branches as customers worried about the safety of their savings. The bank, established in 1968 and operating across multiple states, has a network of 30 branches. While it has achieved milestones in its history, including acquiring scheduled bank status in 1990, its recent financial struggles have necessitated the RBI’s intervention. The RBI will review the situation and decide whether to extend or lift the restrictions based on the bank’s future performance. The possibility of license revocation remains if the situation deteriorates further.
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