RBI Restricts New India Co-op Bank; No Withdrawals”

The Reserve Bank of India (RBI) has placed strict restrictions on Mumbai’s New India Co-operative Bank. Customers cannot withdraw money, and the bank is not allowed to give new loans or accept fresh deposits. These restrictions will last for six months, starting from February 13, 2025.

What Are the Restrictions?

RBI has stopped the bank from:

Giving new loans or renewing old ones.
Accepting new deposits or investments.
Making any payments.
Selling its assets.

Why Did RBI Take This Step?

RBI found that the bank’s financial condition is not stable. There are doubts about whether the bank has enough money. To protect customers, RBI has stopped all withdrawals from savings, current, and other accounts. However, depositors are covered under the Deposit Insurance Scheme, which protects up to ₹5 lakh in case the bank fails.

Customers in Trouble

As soon as the news broke, customers rushed to the bank branches. Many people wanted to withdraw their money but were unable to do so due to RBI’s restrictions. Videos and photos on social media show long lines of worried customers outside closed bank doors.