• Source:JND
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Several of the customers could be seen gathered in front of the New India Cooperative bank in Mumbai's Andheri to withdraw their money after the Reserve Bank of India (RBI) imposed several restrictions on the bank. The customers were complaining of the non-response from the banks, adding that they will disperse off until given an assurance.

They were raising slogans against the bank alleging that they had received no prior notice ahead of this action. Several of the protestors also claimed that the apps related to the bank were not working and they were not getting proper responses from the bank officials as well. 

One of the protestors stated that the bank had given no prior information regarding any action. "... The bank didn't tell us anything... Nobody has the time to check their phone instantly... I have had an account in this bank for the last 32-35 years... I was about to open an FD (Fixed Deposit account) as well with this bank, but luckily, I didn't get the time to do that," the protestor was quoted as saying by the news agency ANI. 

Reasons For Action And Restrictions

Several reports suggest that financial losses in two consecutive budget sessions led to the restrictions from the apex bank. While the bank had suffered a loss of Rs 22.78 crore in March 2024, it faced loss of Rs 30.75 crore in 2023.

The apex court clarified that the restrictions will be in effect for six months from February 13 and it will monitor the progress in these months.The apex court stated that the restrictions were imposed to ensure that customer's savings were safe and not further exploited.

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However, the RBI also clarified that the license of the bank will not be revoked and the financial status of the bank will be continuously monitored by the apex bank officials. The RBI stated that the bank will not be able to issue new loans to the customers. Apart from this, the apex court also announced that the customers will not be able to open Fixed Deposits or saving schemes.

The bank will also not be able to make fresh investments and selling assets to raise fund is also restricted. The RBI clarified that though the restriction is imposed for six months, the duration might get extended if the financial status of the bank will not improve.