The Reserve Bank of India (RBI) has imposed restrictions on the Mumbai-based New India Co-operative Bank, banning it from issuing new loans and allowing withdrawals of deposits for a period of six months. The decision was made due to supervisory concerns and the bank’s liquidity position. As a result, customers are eagerly waiting in queues outside the bank, seeking clarity on their savings and unsure of how they will manage to make ends meet.
One customer, Seema Waghmare, expressed her frustration, saying, “We deposited money just yesterday, but no one warned us about this. Now, they say we’ll get our money in three months, but we have EMIs and bills to pay. How are we supposed to manage?” Another customer, Varsha, is worried about her jewelry and savings, fearing she may have to mortgage her jewelry or rely on friends and family.
The RBI has allowed eligible depositors to receive deposit insurance claim amounts up to Rs 5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) if they submit a willingness to claim and undergo verification. The restrictions are aimed at protecting the interests of depositors and ensuring the bank’s stability. Veteran banker Keki Mistry believes that depositors in Indian banks rarely suffer losses, citing the RBI’s strong supervisory framework and regulations in place to protect depositors. However, the situation is causing uncertainty and frustration among customers, with many expressing concerns about their financial well-being.