Due to its weak financial condition, the Reserve Bank of India (RBI) has placed strict restrictions on Mumbai’s New India Co-operative Bank. Now, Customers are not able to withdraw their money, and the bank is barred from giving new loans or accepting deposits.

https://twitter.com/RBI/status/1890349945040867577

Starting from February 13, 2025, the RBI has stopped the bank from issuing or renewing loans, accepting new deposits, and making any payments. The bank also cannot sell its assets. These rules will last for six months.

The RBI said these steps were taken because the bank’s financial health is not stable, and it wants to protect customers. While withdrawals are not allowed, deposits up to Rs 5 lakh are safe under the Deposit Insurance Scheme.

The news has caused panic among customers, who rushed to the bank branches to withdraw their money but were turned away. Many videos and photos on social media show angry customers standing outside closed bank doors.

The RBI has assured that these restrictions are temporary and aim to safeguard public money.