Mumbai, February 14: The Reserve Bank of India (RBI) imposed restrictions on New India Co-operative Bank, barring it from granting or renewing loans, accepting fresh deposits, making investments, disbursing payments, or selling properties. These measures are in response to recent material developments in the bank and aim to protect depositors' interests.

Due to the bank's current liquidity position, it is prohibited from allowing any withdrawals from savings, current, or other accounts but can set off loans against deposits. Eligible depositors can receive deposit insurance claims up to INR 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). New India Co-Operative Bank Barred From Functioning: Long Queues Seen Outside Mumbai-Based Bank After SBI Imposes Restrictions on Withdrawal of Funds (Watch Video).

Amid the confusion, customers gathered outside Mumbai-based New India Co-operative Bank on Friday, February 14, a day after the Reserve Bank of India barred the lender from issuing new loans and suspended deposit withdrawals for six months. Several videos showing the huge crowd outside several branches of the bank in Mumbai surfaced on social media today.

Everything You Need to Know What Comes After New India Co-Operative Bank Hit With SBI Restrictions

Can You Withdraw Your Money?

No, as per the RBI’s directive, the New India Co-operative Bank cannot approve withdrawals from savings or current accounts. Mumbai: Long Queues Outside New India Co-Operative Bank After RBI Imposes Restrictions (Watch Video).

Will You Get Your Money Back?

Eligible depositors can receive up to INR 5 lakh through the DICGC. Any amount exceeding this limit is uncertain unless the RBI removes the restrictions.

Loans and EMIs?

Loan repayments continue as usual. However, borrowers can request to offset deposits against outstanding loans in accordance with RBI's conditions.

Can New India Co-Operative Bank Issue New Loans and Credit Cards?

The bank cannot issue new loans and credit cards as RBI has barred it from doing so.

The RBI clarified that these directions do not equate to the cancellation of the bank's license. The bank will continue its operations under these restrictions until its financial position improves. The RBI will monitor the bank's situation and take necessary actions in the best interest of the depositors. The directives will be in effect for six months from February 13, 2025, and are subject to review.

(The above story first appeared on LatestLY on Feb 14, 2025 01:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).