Sat Feb 15 14:42:48 UTC 2025: ## ₹122 Crore Embezzlement Leads to RBI Ban on New India Cooperative Bank
**Mumbai, India** – The Reserve Bank of India (RBI) has banned all operations of the New India Cooperative Bank, effective Thursday, following the discovery of a ₹122 crore embezzlement. A case has been registered against the bank’s former general manager and head of accounts, Hitesh Pravinchand Mehta, for allegedly orchestrating the fraud.
According to Mumbai Police, the bank’s acting CEO, Devarshi Ghosh, filed a complaint alleging that Mehta, along with accomplices, conspired to misappropriate funds from the bank’s Prabhadevi and Goregaon offices. The case, initially registered under the Bharatiya Nyaya Sanhita (BNS) for criminal breach of trust and criminal conspiracy, has been transferred to the Economic Offences Wing (EOW) for investigation.
The RBI’s sweeping ban prevents the bank from granting loans, making investments, incurring liabilities (including borrowing), accepting new deposits, or disbursing payments. The bank is also prohibited from selling or transferring any assets.
The RBI’s action sparked panic among bank customers, who thronged branches attempting to access their funds and lockers. While access to lockers was granted, withdrawals were refused, with notices indicating a potential 90-day delay for repayment of deposits. Police presence was required at several branches to manage the large crowds. The investigation is ongoing.
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