Indian The Reserve Bank has dissolved the Board of Directors of New India Co-operative Bank Limited for 12 months. RBI has appointed former Chief General Manager of SBI, Shrikanth as administrator of the bank during this period. The Reserve Bank of India has also constituted a committee of advisors to assist the administrator. Members in the committee of advisors include former SBI General Manager Ravindra Sapra and Abhijeet Deshmukh (CA). A crowd of customers gathered outside this bank this morning.
RBI has imposed ban on bank
The Reserve Bank of India on Thursday imposed several sanctions on the New India Co-operative Bank in Mumbai. Under these restrictions, bank customers cannot withdraw money from their account. According to a PTI report, the Reserve Bank has also banned the withdrawal of any amount by customers in view of the current cash status of New India Co-operative Bank, irrespective of their account. It is a matter of concern that the RBI has banned the bank for the next 6 months and it is also being reviewed.
Money will not come out of the account yet
According to RBI’s instructions, New India Co-operative Bank will not give any loan or advance without pre-completion from 14 February today. Neither this bank will skikar the deposit of a customer nor will he withdraw money from their account. Let the customers tell that up to Rs 5 lakh from their deposits is insured. In such a situation, all the eligible deposits of New India Co-operative Bank will be entitled to receive the insurance claim amount on their deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation.
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