Deposit Crisis: Depositors Demand RBI Intervention to Revive New India Co-Operative Bank

The New India Co-Operative Bank faces a crisis after alleged embezzlement of Rs 122 crore. Depositors petition the RBI for immediate intervention to revive the bank and alleviate their financial hardships. There are concerns about deeper financial irregularities and inadequate deposit insurance coverage impacting depositors.

The New India Co-Operative Bank is embroiled in a financial crisis following an alleged embezzlement of Rs 122 crore, leading depositors to demand urgent action from the Reserve Bank of India (RBI). The issue has raised concerns about deeper financial irregularities potentially undermining the bank's stability.

The Economic Offences Wing of the Mumbai police recently arrested Hitesh Mehta, a senior bank official, for allegedly misappropriating funds, coinciding with the RBI's decision to impose restrictions on withdrawals and to appoint an administrator in place of the cooperative bank's board.

An organization representing the affected depositors has submitted a petition to RBI Governor Sanjay Malhotra, highlighting the severe financial impact on their daily lives and urging for increased transparency and immediate measures to restore confidence in the cooperative banking sector.

(With inputs from agencies.)