RBI Supersedes New India Cooperative Bank Board, Imposes Restrictions

RBI Appoints Ex-SBI GM Shreekant as Administrator to Oversee Operations

- TDG NETWORK

The Reserve Bank of India (RBI) has superseded the Board of Directors of New India Cooperative Bank Ltd, Mumbai, for a period of 12 months, the central bank announced in a statement on Friday. This decision came a day after the RBI imposed several restrictions on the lender.

As a consequence, the RBI has appointed Shreekant, former Chief General Manager of the State Bank of India (SBI), as the 'Administrator' to oversee the bank's operations during this period. Additionally, a 'Committee of Advisors' has been formed to assist the Administrator in his duties. The members of this committee include Ravindra Sapra (former General Manager, SBI) and Abhijeet Deshmukh (Chartered Accountant).

The RBI stated that this action was necessary "due to certain material concerns emanating from poor governance standards observed" in the Mumbai-headquartered bank.

Following the RBI's announcement, hundreds of customers gathered outside branches of New India Cooperative Bank Ltd in Mumbai, seeking to withdraw their savings. Panicked account holders expressed concern over their bank deposits and lockers. Bank officials have reportedly assured customers that they will have access to their lockers.