RBI’s Strict Action on New India Cooperative Bank – Customers in Shock as Withdrawals Halted!

The Reserve Bank of India (RBI) has imposed tough restrictions on New India Cooperative Bank, citing financial mismanagement and a weak financial condition. This means that depositors can no longer withdraw their money, leaving thousands in distress. The restrictions will remain in place for six months, starting from February 13, 2025.

Why Did RBI Take Such a Drastic Step?

The RBI closely reviewed the bank’s financial situation and found that it was on the brink of collapse. Without immediate intervention, depositors could have lost all their money. To protect customers’ interests and avoid a bigger financial crisis, the RBI decided to act before the situation got worse.

Mass Panic as Customers Rush to Bank Branches – As soon as the news spread, hundreds of worried customers flocked to the Vijaynagar branch in Andheri, Mumbai. Many were in complete shock, unsure about what would happen to their hard-earned savings. To manage the growing crowd, bank officials introduced a coupon system, allowing customers to access their lockers in a controlled manner. But this did little to ease their fears.

How Much Money Is at Stake – By March 2024, the bank had ₹2,436 crores in deposits. With account holders unable to withdraw their money freely, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has stepped in to offer some relief. Under this scheme, depositors with ₹5 lakh or less in their accounts are insured, meaning they can claim their money back—but anything above that amount remains uncertain.

What’s Next for the Depositors – Outside the New India Cooperative Bank in Mumbai, angry and anxious customers continue to wait in long lines, seeking answers. Many believe that RBI should have warned them in advance, rather than imposing sudden restrictions that have trapped their money overnight.

Now, depositors are left wondering:

• Will they ever get their full money back?
• Is their life savings at risk?
• How long will they have to wait?

Although RBI has allowed limited withdrawals under certain conditions, many customers argue that the allowed amount is too small to cover their immediate expenses. This uncertainty has left them frustrated, with no clear timeline on when they might regain full access to their funds.