Bank Customers Alert! RBI Freezes Withdrawals from This Bank for 6 Months

The Reserve Bank of India (RBI) has imposed strict restrictions on New India Co-operative Bank, including a six-month ban on withdrawals. Customers will not be able to withdraw money from their savings, current, or any other account during this period.

Why Has RBI Taken This Action?

🔹 The Mumbai-based New India Co-operative Bank has been facing continuous financial losses.
🔹 RBI found irregularities in its accounts and has now appointed an administrator to manage the bank.
🔹 A case of ₹122 crore embezzlement has been registered against top bank officials, leading to arrests.

Impact on Customers

🏦 Total Depositors: 1.3 lakh customers
💰 Majority of Deposits: Over 90% of depositors have ₹5 lakh or less in their accounts.
📍 Branch Locations:

• Mumbai (28 branches)
• Surat, Gujarat (2 branches)
• Pune (1 branch)

Legal Actions and Investigation

• RBI dissolved the bank’s board and appointed an administrator to oversee operations.
• Mumbai Police’s Economic Offenses Wing is investigating a ₹122 crore fraud case involving the General Manager and Accounts Head.
• The court has extended police custody of the accused until February 28.

What About Customer Deposits?

✅ Deposit Insurance of ₹5 Lakh: Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, each depositor is insured up to ₹5 lakh if the bank collapses.

🚨 Key Fact: After the PMC Bank scam, the DICGC insurance limit was raised from ₹1 lakh to ₹5 lakh in 2020. There are discussions about increasing this amount further.

What’s Next?

📢 Customers are advised to stay updated on RBI’s further decisions. While withdrawals are currently restricted, the bank’s future will depend on RBI’s assessment and recovery efforts.

What are your thoughts on this situation? Let us know in the comments! 💬