‘We have EMIs to pay’: New India Co-operative Bank customers gather in panic after RBI imposes restrictions
Several people gathered outside New India Co-operative Bank after RBI's restrictions on the bank triggered uncertainty among customers regarding their deposits.
The Reserve Bank of India (RBI) had imposed several restrictions on New India Co-operative Bank due to supervisory concerns.
This comes after the close of the bank's business on Thursday, February 13, 2025, and the restrictions would continue for a six month period, subject to review.
However, this resulted in panic, with several of the bank's customers seen rushing to and gathering around a branch.
A post on X from news agency ANI showed Seema Waghmare, a customer as saying, “We deposited money just yesterday, but they did not say anything... They should have told us that this was going to happen... They are saying that we will get our money within 3 months…We have EMIs to pay, we have no idea how we will do all of that.”
RBI's restrictions on India Co-operative Bank
The restrictions include ones on withdrawals by depositors.
"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 RBI wrote in its announcement.
However, the bank is allowed to set off loans against deposits, but this is subject to certain conditions.
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The bank can also incur expenditure on salaries of employees, rent, and electricity bills.
The RBI also announced that the bank should not grant or renew any loans and advances, make any investment, and incur any liability, which includes acceptance of fresh deposits, without prior approval.
"These directions are necessitated due to supervisory concerns emanating from the recent material developments in the bank, and to protect the interest of depositors of the bank," the central bank said.
Apart rom all this, eligible depositors are entitled to receive a deposit insurance claim amount of their deposits up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
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