Investors queued up in front of the Pen Urban Co-operative Bank in Karjat, on Monday were surprised to see a notice saying: "No distribution of Rs 1,000 notes".
Investors and shareholders protested outside the Konkan Gyanpeth College of Engineering and Pharmacy, which is owned by Shishir Dharkar, the trustee of the bank.
The RBI has sealed all the 18 branches of the bank in the Raigad district and asked them to stop issuing money.
"If we don't get our money, we will not allow the trustee to run the college," an investor said. Investors have called for a bandh on Tuesday.