No money left to live on, seniors march to New India Cooperative Bank

Over 100 Thane residents, mostly seniors, protested for access to locked funds at New India Cooperative Bank amid ongoing RBI restrictions.

THANE: More than 100 residents of Thane, most of them senior citizens, marched silently towards the bank they had trusted for more than 25 years, pleading with the Vartak Nagar police to let them speak to the authorities there, on Monday morning.

Thane, India - April 28, 2025: Accounts holders protest to get their entire deposits Money in The bank ,After the RBI imposed restrictions, the money of the account holders of New India Co-op Bank Ltd.was frozen after the restrictions were imposed. Today, all these account holders protested outside Thane Vasant Vihar Bank in thane on Monday . And the account holders demanded that all the account holders' money should be returned as soon as possible and if not, such a protest will be continued from time to time Ê,in Thane,in Mumbai, India, on, Monday, April -28, 2025. ( Praful Gangurde /HT Photo )

The protestors were all depositors with New India Cooperative Bank.

Many live alone. Some are battling serious health conditions. All have life savings locked up in accounts and fixed deposits here. Some have had to put off surgeries as a result, others are struggling to meet daily expenses.

So, braving the heat, they marched to the bank at 11.30 am.

New India Cooperative Bank has been embroiled in a ₹122-crore embezzlement case since earlier this year. In March, the Reserve Bank of India (RBI) imposed restrictions on the bank, amid ongoing investigations. Under these restrictions, the bank may only disburse small sums to depositors, currently, a one-time withdrawal of ₹25,000 per account.

For the depositors, the clock is ticking.

If the RBI doesn’t relax its restrictions and let them withdraw their funds, or initiate a revival or merger plan for the bank, the Deposit Insurance and Credit Guarantee Corporation (DICGC) could begin to disburse insurance payouts next month. Once that happens, it will become much more difficult to reclaim their money, and it could be years or decades before they receive even compensation on any deposits exceeding ₹5 lakh (the maximum refund offered by insurance providers in such cases).

Across the country, in cases like this, money thus lost to a bank has not been recovered.

Hence the march, even by the aged and ailing. Their questions on Monday morning were simple: What is the bank doing to settle their payments? Has New India Cooperative communicated with the RBI? Has the RBI responded on whether there will be a relaxation of restrictions, or a merger?

“My account with this bank goes back 25 years,” said Umakant Khorsekar, 72, a retired professor. “We invested in fixed deposits here, that they advised us to consider. At the time, they were so helpful and polite. Now, no one is willing to even speak to us. My wife and I are able to stay afloat because we have pension accounts elsewhere.”

Khorsekar spoke of friends, also retired, who are worse off than he and his wife. One booked a flat, paid the initial deposit, and is now unable to pay further instalments because all his savings are stuck. “Another family I know saved money for their daughter’s MBBS admission, but they too are helpless now,” he said.

Also in the small crowd on Monday was Nitin Sable, 60, who liquidated investments and moved all the proceeds to this bank, a week before the restrictions, because he was planning his younger daughter’s wedding. “What worse situation could there be than not having enough money for your daughter’s wedding? I feel completely helpless. I have to depend on others now,” he said.

Speaking of his situation, Sable was overcome with dizziness. Others in the crowd stepped forward to offer him water to drink, and help him find a place to rest.

Chaya Bidaye, 74, joined the protest amid struggles to care for her cancer-stricken husband. “All his life savings are in this bank. Now, with his ongoing radiation therapy, we are in severe financial distress. Earlier, we used to take a taxi to the hospital. Now, even taking an autorickshaw feels like a luxury. I am scared about how we will survive the next few months. I request the government and RBI to urgently return our money,” she said.

Sulbha Subramaniam, 66, spoke of her plans to retire from her job as a counsellor, after undergoing surgery for a blood clot. “I thought I would enjoy the rest of my life peacefully, after years of hard work. Now, I am forced to continue working because my savings are locked up. All my white money earned through years of honest labour is trapped,” she said. “If I stop working, I won’t even be able to meet basic living expenses, let alone fulfil my small dreams.”

Bank officials did not engage with the protestors, emerge from the bank, or respond to reporters’ questions.

There is no word yet on whether the RBI will cede to the depositors’ primary requests: that automated payments for essentials such as utility bills be allowed to proceed as before, and that the current one-time withdrawal limit be raised from ₹25,000 to at least ₹1.5 lakh.