One More Bank Failure: RBI Bans New India Co-operative Bank, Customers crowded in Bank

Mumbai-based New India Co-operative Bank has been barred from carrying out regular business operations by the Reserve Bank of India (RBI) due to concerns over its financial health and liquidity position.

Bank customers have crowded the Bank since morning. They fear about their money deposited in Bank. Police was called by Bank Authorities to handle the public in Bank.

RBI’s Restrictions on the Bank

The RBI has prohibited the bank from issuing new loans and restricting deposit withdrawals for a period of six months. This decision has been taken due to the bank’s weak liquidity position and overall financial stress.