The Reserve Bank of India (RBI) has imposed stringent restrictions on New India Co-operative Bank Limited, Mumbai, citing serious financial concerns. The central bank has barred the lender from undertaking key financial activities without prior approval, effective from the close of business on 13 February 2025.

Why has RBI taken action?

According to the RBI’s official notice, The action comes after supervisory concerns raised over the bank's financial health, and it is aimed at safeguarding depositors’ interests. The restrictions significantly limit the bank's operational capacity, preventing it from granting or renewing loans, making investments, borrowing funds, accepting new deposits, or disbursing payments without prior RBI approval.