The Reserve Bank of India (RBI) has imposed strict restrictions on New India Co-operative Bank Limited in Mumbai, citing supervisory concerns over its financial position. As per the restrictions which are effective from the close of business on 13 February 2025,

The Reserve Bank of India (RBI) has imposed strict restrictions on Mumbai-based New India Co-operative Bank, barring it from issuing new loans, accepting fresh deposits, or allowing withdrawals for six months.

The Reserve Bank of India (RBI) has imposed restrictions on the New India Co-operative Bank in Mumbai due to supervisory concerns about its liquidity position. These include a freeze on withdrawals and prohibitions on granting new loans or investments.

The RBI has said depositors cannot withdraw funds from their savings, current or any other account in the six-month period when the restrictions will remain in place

All requests for withdrawal of funds were turned down, with banners at branch gates saying deposits would be paid back in around 90 days

Panic gripped customers of New India Co-operative Bank after the Reserve Bank of India (RBI) imposed severe restrictions on withdrawals for six months due to concerns over the bank’s financial stability.

Account holders in thousands gathered outside Mumbai-headquartered New India Co-operative Bank Limited branches to withdraw their hard-earned savings, soon after the Reserve Bank of India put several restrictions on the lender.

New India Co-operative Bank has been barred from accepting or allowing withdrawals of funds by depositors and the restrictions would remain in force for a period of six months and are subject to review.

The RBI imposed an immediate restriction on all businesses for the New India Co-operative Bank due to irregularities in lending practices