‘We have EMIs to pay’: New India Co-operative Bank customers gather in panic after RBI imposes restrictions

Several people gathered outside New India Co-operative Bank after RBI's restrictions on the bank triggered uncertainty among customers regarding their deposits.

Updated on: Feb 14, 2025, 16:43:27 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

The Reserve Bank of India (RBI) had imposed several restrictions on New India Co-operative Bank due to supervisory concerns.

A man walks past the RBI logo at RBI headquarters in Mumbai, Friday, Feb. 7, 2025. (Shashank Parade/PTI)

This comes after the close of the bank's business on Thursday, February 13, 2025, and the restrictions would continue for a six month period, subject to review.

However, this resulted in panic, with several of the bank's customers seen rushing to and gathering around a branch.

Also Read: 'PM put curtain…': Rahul Gandhi on PM Narendra Modi's reply to question on US' bribery charges against Gautam Adani

A post on X from news agency ANI showed Seema Waghmare, a customer as saying, “We deposited money just yesterday, but they did not say anything... They should have told us that this was going to happen... They are saying that we will get our money within 3 months…We have EMIs to pay, we have no idea how we will do all of that.”

RBI's restrictions on India Co-operative Bank

The restrictions include ones on withdrawals by depositors.

"Considering the bank's present liquidity position, the bank has been directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor," the RBI wrote in its announcement.

However, the bank is allowed to set off loans against deposits, but this is subject to certain conditions.

Also Read: Meta CTO Andrew Bosworth comments on leak of meeting's details, his messages get leaked too

The bank can also incur expenditure on salaries of employees, rent, and electricity bills.

The RBI also announced that the bank should not grant or renew any loans and advances, make any investment, and incur any liability, which includes acceptance of fresh deposits, without prior approval.

"These directions are necessitated due to supervisory concerns emanating from the recent material developments in the bank, and to protect the interest of depositors of the bank," the central bank said.

Also Read: Meta CTO says employees who disagree with policy changes can 'quit' or ‘consider working elsewhere’: Report

Apart rom all this, eligible depositors are entitled to receive a deposit insurance claim amount of their deposits up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.