The Reserve Bank of India (RBI) has imposed restrictions on New India Co-operative Bank Limited, Mumbai, effectively halting its operations. As per a directive issued under Section 35A of the Banking Regulation Act, 1949, the bank has been barred from granting or renewing loans, making fresh investments, or incurring any liabilities without prior RBI approval.
The directive, effective from the close of business on February 13, 2025, also prohibits deposit withdrawals, leaving customers unable to access their funds. However, the bank has been allowed to set off loans against deposits under specified conditions. Additionally, essential expenses such as employee salaries, rent, and electricity bills will be permitted as per RBI’s notification.
A copy of the RBI directive has been made available at the bank’s premises and website for public reference. The central bank’s intervention comes in response to concerns over the bank’s liquidity position, prompting regulatory action to safeguard financial stability.
