RBI freeze on co-op bank hits depositors TIMES NEWS NETWORK Mumbai : Funds of lakhs of depositors and several cooperative housing societies are stuck with New India Cooperative Bank after it was placed under moratorium by RBI on Thursday. RBI said the restrictions were imposed “due to supervisory concerns” over “recent material developments in the bank, and to protect the interest of depositors...” The action follows a spot inspection and a complaint filed by the bank’s chief compliance officer with the Economic Offences Wing over alleged fund misappropriation by staff. A police source said a bank official would be called to record his statement. RBI has dissolved the bank’s board for mismanagement and appointed an administrator and a committee of advisors to restore operations and revive the bank. Bankers speculate that operations are likely to be taken over by another cooperative bank. Anxious depositors thronged branches across the Mumbai region. They were greeted by banners in the name of the “Acting CEO” that said deposits up to ₹5 lakh were insured and would be released “in around 90 days”. Deposits coming under the ₹5 lakh insurance cover over 90% of the bank’s 1.3 lakh depositors. However, no bank staff were available to answer queries. Pandurang Kamble, an account holder in the Virar branch for the last 22 years, said, “I have ₹5 lakh in fixed deposits. My salary is also credited in this account. If there is no refund after 90 days then what? My wife is a cardiac patient, what will happen to her once I break this news? Govt should step in and help us.” The bank has 28 branches in Maharashtra and Gujarat. New India Cooperative Bank was founded as Bombay Labour Co-operative Bank in 1968 by late parliamentarian George Fernandes. It was renamed as New India Cooperative Bank after the Emergency. The bank reduced its accumulated losses from ₹30.7 crore in FY23 to ₹22.8 crore as of Mar 31, 2024. However, its advances portfolio decreased by ₹155 crore (11.7%) to ₹1174.8 crore as of Mar 31, 2024. Deposits increased by ₹ 30.5 crore (1.3%) to ₹2,436 crore as of Mar 31, 2024. Advances portfolio stood at ₹1175 crore, working capital was ₹2,997 crore, and total reserve funds were ₹292.9 crore. Under RBI directions, the bank is restricted from allowing withdrawals from savings or current accounts but can set off loans against deposits under certain conditions. Essential expenditures such as salaries, rent, and electricity bills are permitted as per RBI’s directions. It cannot also grant or renew loans and advances, make investments, incur liabilities (including borrowal of funds and acceptance of fresh deposits), disburse payments, enter into compromises, or dispose of properties or assets without RBI’s prior approval.

RBI freeze on co-op bank hits depositors TIMES NEWS NETWORK Mumbai : Funds of lakhs of depositors and several cooperative housing societies are stuck with New India Cooperative Bank after it was placed under moratorium by RBI on Thursday. RBI said the restrictions were imposed “due to supervisory concerns” over “recent material developments in the bank, and to protect the interest of depositors...” The action follows a spot inspection and a complaint filed by the bank’s chief compliance officer with the Economic Offences Wing over alleged fund misappropriation by staff. A police source said a bank official would be called to record his statement. RBI has dissolved the bank’s board for mismanagement and appointed an administrator and a committee of advisors to restore operations and revive the bank. Bankers speculate that operations are likely to be taken over by another cooperative bank. Anxious depositors thronged branches across the Mumbai region. They were greeted by banners in the name of the “Acting CEO” that said deposits up to ₹5 lakh were insured and would be released “in around 90 days”. Deposits coming under the ₹5 lakh insurance cover over 90% of the bank’s 1.3 lakh depositors. However, no bank staff were available to answer queries. Pandurang Kamble, an account holder in the Virar branch for the last 22 years, said, “I have ₹5 lakh in fixed deposits. My salary is also credited in this account. If there is no refund after 90 days then what? My wife is a cardiac patient, what will happen to her once I break this news? Govt should step in and help us.” The bank has 28 branches in Maharashtra and Gujarat. New India Cooperative Bank was founded as Bombay Labour Co-operative Bank in 1968 by late parliamentarian George Fernandes. It was renamed as New India Cooperative Bank after the Emergency. The bank reduced its accumulated losses from ₹30.7 crore in FY23 to ₹22.8 crore as of Mar 31, 2024. However, its advances portfolio decreased by ₹155 crore (11.7%) to ₹1174.8 crore as of Mar 31, 2024. Deposits increased by ₹ 30.5 crore (1.3%) to ₹2,436 crore as of Mar 31, 2024. Advances portfolio stood at ₹1175 crore, working capital was ₹2,997 crore, and total reserve funds were ₹292.9 crore. Under RBI directions, the bank is restricted from allowing withdrawals from savings or current accounts but can set off loans against deposits under certain conditions. Essential expenditures such as salaries, rent, and electricity bills are permitted as per RBI’s directions. It cannot also grant or renew loans and advances, make investments, incur liabilities (including borrowal of funds and acceptance of fresh deposits), disburse payments, enter into compromises, or dispose of properties or assets without RBI’s prior approval.

TIMES NEWS NETWORK  15.02.2025

Mumbai : Funds of lakhs of depositors and several cooperative housing societies are stuck with New India Cooperative Bank after it was placed under moratorium by RBI on Thursday. RBI said the restrictions were imposed “due to supervisory concerns” over “recent material developments in the bank, and to protect the interest of depositors...” The action follows a spot inspection and a complaint filed by the bank’s chief compliance officer with the Economic Offences Wing over alleged fund misappropriation by staff. A police source said a bank official would be called to record his statement. 

RBI has dissolved the bank’s board for mismanagement and appointed an administrator and a committee of advisors to restore operations and revive the bank. Bankers speculate that operations are likely to be taken over by another cooperative bank. Anxious depositors thronged branches across the Mumbai region. They were greeted by banners in the name of the “Acting CEO” that said deposits up to ₹5 lakh were insured and would be released “in around 90 days”. Deposits coming under the ₹5 lakh insurance cover over 90% of the bank’s 1.3 lakh depositors. However, no bank staff were available to answer queries. Pandurang Kamble, an account holder in the Virar branch for the last 22 years, said, “I have ₹5 lakh in fixed deposits. My salary is also credited in this account. If there is no refund after 90 days then what? My wife is a cardiac patient, what will happen to her once I break this news? Govt should step in and help us.” The bank has 28 branches in Maharashtra and Gujarat. New India Cooperative Bank was founded as Bombay Labour Co-operative Bank in 1968 by late parliamentarian George Fernandes. It was renamed as New India Cooperative Bank after the Emergency. 

The bank reduced its accumulated losses from ₹30.7 crore in FY23 to ₹22.8 crore as of Mar 31, 2024. However, its advances portfolio decreased by ₹155 crore (11.7%) to ₹1174.8 crore as of Mar 31, 2024. Deposits increased by ₹ 30.5 crore (1.3%) to ₹2,436 crore as of Mar 31, 2024. Advances portfolio stood at ₹1175 crore, working capital was ₹2,997 crore, and total reserve funds were ₹292.9 crore. Under RBI directions, the bank is restricted from allowing withdrawals from savings or current accounts but can set off loans against deposits under certain conditions. Essential expenditures such as salaries, rent, and electricity bills are permitted as per RBI’s directions. It cannot also grant or renew loans and advances, make investments, incur liabilities (including borrowal of funds and acceptance of fresh deposits), disburse payments, enter into compromises, or dispose of properties or assets without RBI’s prior approval.