- Hindi news
- Business
- RBI Bars New India Co Operative Bank from Doing Fresh Business; Customers Can’t withdraw Deposits
Mumbai8 minutes ago
- Copy link
There is a crowd of people outside the Mumbai based New India Co-operative Bank, as customers want to withdraw their money. The Reserve Bank has banned deposits and withdrawal in the bank due to not following the rules on Thursday, 13 January. Now the bank will not be able to release a new loan.
The account holders who have gathered outside the Vijayanagar branch in Andheri, Mumbai are confused about when they will get their money. Some people said that the bank is not answering their questions and even its customer support services and apps are not working.
RBI action in view of the current cash situation
The Reserve Bank said that in view of the current cash situation of the bank, it has been instructed not to allow the withdrawal of any amount from the depositors’ savings bank or current accounts or any other account. However, it is allowed to spend on some essential things like salary, rent and electricity bills.
RBI’s ban will be effective for six months
RBI will continue to monitor the position of the bank and modify these instructions to ensure safety of the interests of the depositors. These restrictions will be effective for six months from February 13, 2025.
Depositors will be able to take claims up to Rs 5 lakh
The RBI said that the Eligible Depositors Depositors Deposit Insurance and Credit Guarantee Corporation will be entitled to get a deposit insurance claim amount up to Rs 5 lakh. At the end of March 2024, the cooperative bank had a deposit of Rs 2436 crore.
