By Naysa Shrivastava
On 14th February, New India Co-operative Bank, Bandra, denied the authority to give or accept funds by the Reserve Bank of India which led to a chaotic situation outside the bank as people could not withdraw the money. The people became more agitated when they got to know that they could not access their savings.
The restriction imposed by RBI will stay in force for six months and will be reviewed but the bank has the permission to generate loans against deposits according to the terms and conditions given by RBI. It might seek expenditure for particular items like salaries of employees, rent, and electricity bills.
RBI said, “The current situation of the bank’s liquidity position is very poor that is why the bank has been asked not to permit withdrawal from current or savings bank accounts.” The bank will not approve or accept any loans and advances, are not allowed to make investments, incur any liability, or approve any new deposits without getting permission. RBI added, “The order has been given because of supervisory issues, emerged due to recent material developments in the bank and to safeguard the interest on depositors money.”
The statement released by RBI further said, “The eligible depositors are permitted to seek deposit insurance claim amount of their deposits up to monitory ceilings of 5,00,000 in the same capacity from the Deposit Insurance and Credit Guarantee Corporation (DICGC) based on submission of acceptance by the concerned depositors and after verification.
“I am an old account holder of this bank, it’s been 22 years since I have been banking here. My family has put all the savings in this bank as we trusted that this bank would keep it secure but without giving any prior information they stopped us from taking our money. We are not allowed to withdraw money for 3 months, how will we manage till then? Ajay said, a customer of NCIB.“We could have secured our funds but the bank didn’t inform us. We are dependent on this bank, how are we supposed to handle this situation,” Arbaaz said, another customer.