RBI Cracks Down on New India Co-operative Bank: Governance Issues Lead to Action

The RBI has taken control of New India Co-operative Bank by superseding its board due to poor governance. Restrictions, including halting loan issuance and deposit withdrawals, were imposed. Shreekant has been appointed as the Administrator, aided by a Committee of Advisors, to manage the bank's affairs.

The Reserve Bank of India (RBI) has taken decisive action against New India Co-operative Bank, ousting its board after imposing restrictions due to governance lapses.

Customers reacted by gathering at branches as restrictions halted new loans and deposit withdrawals for six months. The bank operates mainly in Mumbai with 28 branches.

Shreekant, ex-chief general manager of SBI, steps in as Administrator, with advisors to manage the bank amid concerns, aiming to safeguard depositors and stabilize bank operations.