A day after imposing several restrictions on city-based New India Co-operative Bank, the RBI on Friday superseded its board citing poor governance standards. A large number of bank's customers had gathered at its branches on Friday following RBI's restrictions,

The RBI action on New India Co-operative Bank was prompted by alleged misappropriation of funds by the lender's staffers, sources said on Friday. Over 90 per cent of the city-based bank's 1.3 lakh depositors have up to Rs 5 lakh in their accounts,

However, RBI stated that the bank is allowed to set off loans against deposits subject to the conditions stated in the directions

Mumbai: Thousands of anxious depositors of the New India Cooperative Bank, which was once controlled by the socialists, rushed to its branches in Ghatkopar and other places on Friday following the supersession of its board by the Reserve Bank of India for 12 months because of "poor governance standards.

Account holders in thousands gathered outside Mumbai-headquartered New India Co-operative Bank Limited branches to withdraw their hard-earned savings, soon after the Reserve Bank of India put several restrictions on the lender.

New India Co-operative Bank has been barred from accepting or allowing withdrawals of funds by depositors and the restrictions would remain in force for a period of six months and are subject to review.

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