Panic gripped customers of New India Co-operative Bank after the Reserve Bank of India (RBI) imposed severe restrictions on withdrawals for six months due to concerns over the bank’s financial stability.

The Mumbai police have registered a case against the New India Cooperative Bank's General Manager and Head of Accounts along with his associates for allegedly embezzling Rs 122 crore of funds, officials said on Saturday.

RBI’s action was necessitated due to certain material concerns emanating from poor governance standards observed in the Mumbai-headquartered New India Co-operative Bank.

These directions came into effect on from the close of business on Thursday and are expected to remain in force for a period of six months, subject to review.

All requests for withdrawal of funds were turned down, with banners at branch gates saying deposits would be paid back in around 90 days

The Reserve Bank of India (RBI) has imposed strict restrictions on New India Co-operative Bank Limited in Mumbai, citing supervisory concerns over its financial position. As per the restrictions which are effective from the close of business on 13 February 2025,

Account holders in thousands gathered outside Mumbai-headquartered New India Co-operative Bank Limited branches to withdraw their hard-earned savings, soon after the Reserve Bank of India put several restrictions on the lender.

People gathered outside the New India Co-operative Bank after the RBI issued a notice to halt all business on 14.Seema Waghmare, a customer of the New India Co-operative Bank, said, "We deposited money just yesterday,

The RBI imposed an immediate restriction on all businesses for the New India Co-operative Bank due to irregularities in lending practices