Sat Feb 15 07:39:36 UTC 2025: ## RBI Imposes Restrictions on Mumbai’s New India Co-operative Bank
**Mumbai, India** – The Reserve Bank of India (RBI) has imposed significant restrictions on the New India Co-operative Bank in Mumbai, citing its deteriorating financial health. Effective February 13, 2025, for a period of six months, the bank is prohibited from allowing withdrawals from savings, current, and other accounts, issuing new loans, or accepting new deposits.
The RBI’s action follows two years of consecutive losses for the bank, including a ₹22.78 crore loss in March 2024 and a ₹30.75 crore loss in 2023. This intervention is intended to protect depositors and prevent further financial strain on the institution. The RBI has clarified that the bank’s license remains valid and its situation is under continuous review.
Depositors are urged not to panic. Coverage under the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance for up to ₹5 lakh per depositor. While amounts exceeding this limit are not immediately accessible, the RBI’s restrictions are currently temporary. The restrictions may be extended if the bank’s financial condition doesn’t improve.
This action follows a pattern of similar restrictions imposed on several cooperative banks in recent years, notably the PMC Bank case, which was eventually taken over by another financial institution. Account holders are advised to maintain backup funds in other banks and contact the bank regarding their deposit insurance claims. The situation remains under close monitoring by the RBI.
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