Mumbai : Following the Reserve Bank of India’s (RBI) restrictions on fund withdrawals from Mumbai-based New India Co-operative Bank, anxious depositors rushed to its branches on Friday, forming long queues to retrieve their money. Some depositors claimed they had deposited funds just a day earlier (Thursday) without being informed about the impending restrictions.
On Thursday, the RBI imposed several curbs on the bank, including limits on fund withdrawals, citing supervisory concerns. The announcement triggered panic among customers, who gathered outside various branches, including the Vijayanagar branch in Andheri, Mumbai, early in the morning.
“Considering the bank’s present liquidity position, the bank has been directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor…,” the RBI said.
The RBI’s directives took effect at the close of business on Thursday and will remain in force for six months, subject to review. However, the bank is permitted to offset loans against deposits under the conditions outlined in the RBI’s directions. Additionally, it may incur expenses for essential items such as employee salaries, rent, and electricity bills.