More than 90 percent of the 1.3 lakh depositors of this Mumbai-based bank have deposits of up to Rs 5 lakh in their accounts. Most of the 28 branches of this cooperative bank are in Mumbai metropolis. It has two branches in Surat, Gujarat and one in Pune.
New india cooperative bank: The tension of the customers of New India Co-operative Bank has increased. Now they are not even able to withdraw their money deposited in the bank. Let us tell you that recently the Reserve Bank of India (RBI) has imposed many types of bans on the New India Co-operative Bank, which is continuously running in loss. This also includes withdrawal of money by depositors. After the instructions of the Reserve Bank, the ban on New India Co-operative Bank from closing its business from February 13 came into effect and will remain in force for the next six months. According to the RBI statement, “In view of the current cash position of the bank, it has been instructed not to allow withdrawal of any amount from the savings or current account or any other account of the depositors.” More than 90 percent of the 1.3 lakh depositors of this Mumbai-based bank have deposits of up to Rs 5 lakh in their accounts. Let us tell you that most of the 28 branches of this cooperative bank are in Mumbai metropolis. It has two branches in Surat, Gujarat and one branch in Pune.
Fast action in the case
Let us tell you that the Reserve Bank of India had found some flaws in the investigation of the accounts of New India Co-operative Bank. Last Friday, the RBI dissolved the board of the bank for a year and appointed an administrator to manage the functioning. A committee of advisors was also appointed to assist the administrator. After this, Mumbai Police registered a case of alleged embezzlement of Rs 122 crore against the General Manager and Accounts Head of New India Co-operative Bank and his associates. Now a Mumbai court has extended the police custody of Hitesh Mehta, the main accused in the New India Cooperative Bank embezzlement case, till February 28. The court also sent the bank’s former CEO Abhimanyu Bhoan to police custody till February 28. The Economic Offenses Wing of Mumbai Police is investigating the case. Mehta, the bank’s General Manager and Head of the Accounts Department, is accused of embezzling Rs 122 crore from the bank’s vault at different times.
What about the customers’ money?
According to the current rule, if a bank collapses, its customers get insurance of up to Rs 5 lakh on the amount deposited. In such a situation, if this bank collapses, then Rs 5 lakh of the customers will be secure. In the last few years, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has been paying such claims. This body collects premium from banks for the ‘cover’ it provides and most of the claims have been made in the case of cooperative banks. It is worth noting that after the PMC Bank scam, the DICGC insurance limit was increased from Rs 1 lakh to Rs 5 lakh in 2020. Now the government can increase this amount further.
