RBI: The Reserve Bank of India (RBI) has taken strict action against the New India Co-operative Bank of Mumbai. Now the customers of the bank will not be able to withdraw money from their savings or current account. With this, the bank will not be able to give any new loan nor accept a new deposit. These restrictions will remain in force from 13 February 2025 for the next six months.
The Reserve Bank of India (RBI) has taken this step by the RBI in view of the financial position of New India Co-operative Bank in Mumbai, the country’s private sector. This move of RBI can cause a lot of trouble to the bank customers.
Why did RBI take these steps
RBI has imposed this ban on New India Co-operative Bank due to its poor economic condition. In view of the deteriorating condition of the bank, the RBI took this step so that the money of the customers would be safe and there is not much pressure on the bank. Now customers will neither be able to withdraw money from their account nor will anyone be able to deposit new. This can cause a lot of trouble to the bank customers. Currently, these restrictions have been imposed for six months and during this time an attempt will be made to improve the condition of the bank. Six months later, RBI will review the decision again.
The RBI said that this decision has been taken in view of the bank’s current financial situation. However, the bank has been allowed for necessary expenses like salary, rent and electricity bills.
RBI tightened rules for this bank
RBI has implemented strict rules on the bank since 13 February 2025. RBI has made it clear that now the bank will not be able to give any new loan without its approval, nor will it be able to increase the first given loan. With this, the bank will neither be able to invest nor can take a new deposit from any customer. This decision has been taken keeping in mind the financial position of the bank and the interests of the depositors. At the same time, eligible customers can get an insurance claim of deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
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