Sat Feb 15 21:22:58 UTC 2025: ## RBI Supersedes New India Co-operative Bank Board, Sparking Depositor Panic

**Mumbai, India** – The Reserve Bank of India (RBI) has superseded the board of directors of New India Co-operative Bank (NICB) and imposed restrictions on withdrawals, sparking panic among depositors who queued outside the Mumbai branch to access their funds. The RBI cited concerns about the bank’s financial health, following a spot inspection that led to a police complaint alleging fund misappropriation by some staff.

The RBI has appointed a former SBI Chief General Manager, Shreekant, as administrator, and established an advisory committee to assist. While the RBI assures this action is not a license cancellation, it has barred NICB from accepting new deposits, providing loans, or making investments. Depositors can claim up to ₹5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC), with sources indicating over 90% of deposits are covered.

NICB reported losses of ₹22.78 crore for FY24 and ₹30.75 crore for FY23, with advances totaling ₹1,175 crore and deposits at ₹2,436 crore as of March 2024. The restrictions, which prevent withdrawals for an unspecified period, have drawn criticism from consumer advocacy groups like the Mumbai Grahak Panchayat, who voiced concerns about the hardship faced by depositors, particularly senior citizens and pensioners. They have requested a meeting with RBI officials to discuss the situation. The scene outside the bank is reminiscent of the crisis surrounding the Punjab and Maharashtra Co-operative Bank (PMC), which was later merged with Unity Small Finance Bank. The administrator’s immediate task is to assess the bank’s financial position and restore normal operations.

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