RBI Steps in to Overhaul New India Cooperative Bank Amid Financial Turmoil

Mumbai Police's Economic Offences Wing has launched an investigation into alleged irregularities at New India Cooperative Bank. Following recent restrictions, the Reserve Bank of India appointed a new administrator, citing governance concerns. Deposit restrictions have spurred panic among account holders regarding their savings' safety. EOW continues its in-depth examination.

The Mumbai Police's Economic Offences Wing (EOW) has initiated a comprehensive investigation into the alleged financial discrepancies at New India Cooperative Bank, prompting a stir among customers. A complaint from a bank representative catalyzed the investigation, leading to the recording of key testimonies.

On February 14, the Reserve Bank of India (RBI) took decisive action by superseding the Board of Directors of New India Cooperative Bank Ltd for a year, citing governance issues. The central bank appointed Shreekant, a former SBI Chief General Manager, to oversee the bank's operations. A 'Committee of Advisors' was also established to support the administrator's efforts.

The RBI's intervention comes amid heightened concerns about the bank's financial health, prompting anxious customers to form long queues outside branches. In a protective measure, the RBI imposed restrictions on financial activities, including loan issuance and deposit acceptance, while allowing limited essential expenditure, reflecting the bank's precarious liquidity situation.