The RBI imposed several restrictions on New India Co-operative Bank yesterday, including on withdrawal of funds by depositors, amid supervisory concerns.

 

 

The Reserve Bank’s Directions to New India Co-operative Bank, Mumbai came into force from the close of business yesterday and would remain in force for a period of six months and are subject to review.

 

 

RBI said that 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 bank, however, is allowed to set off loans against deposits, subject to the conditions stated by RBI. 

 

 

RBI further said that as from the close of business on February 13th, the bank shall not, without prior approval, grant or renew any loans and advances, make any investment, and incur any liability, including acceptance of fresh deposits.

 

 

Further, eligible depositors would be entitled to receive deposit insurance claim amount of their deposits up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation.