Urgent Plea for New India Co-op Bank's Revival Gains Momentum

Deposit holders of the fraud-stricken New India Co-operative Bank met with RBI advisors, pushing for clearer plans on the bank's revival or merger. The depositors' group seeks immediate actions to restore confidence, amid criminal proceedings against suspects involved in the bank's Rs 122 crore scam.

Deposit holders of the troubled New India Co-operative Bank confronted RBI advisors, seeking definitive strategies for either reviving the bank or executing a merger. The meeting highlighted depositors' demands for increased withdrawal limits and better protection of their financial interests.

The NICB Depositors' Foundation stressed the urgency of rebuilding depositor trust after RBI placed restrictions in February 2025, leaving many account holders facing severe financial difficulties. Eight arrests have been made in the Rs 122 crore embezzlement case involving the bank.

TN Raghunatha of the Foundation reported a cautiously optimistic response from RBI-appointed advisors, who revealed that several revival options are under consideration. Simultaneously, regulatory officials assured of escalating concerns to higher authorities, while depositors continue to advocate for pertinent updates and increased withdrawal limits.

(With inputs from agencies.)