Reserve Bank of India superseded the Board of Directors of New India Cooperative Bank Ltd, Mumbai, for a period of 12 months, the central bank said in a statement on Friday, a day after it imposed several restrictions on the lender
Pic/PTI
Amid growing panic among account holders of New India Co-operative Bank, the Mumbai Police have registered a case against the bank’s former General Manager, Hitesh Praveenchand Mehta, for allegedly siphoning Rs 122 crore from its treasury.
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Mehta, who oversaw the Dadar and Goregaon branches, is accused of misusing his position to commit fraud between 2020 and 2025. The case was filed based on a complaint by the bank’s Chief Accounts Officer at Dadar Police Station.
Police suspect Mehta and another individual were involved in the scam. The case has now been transferred to the Economic Offences Wing (EOW) for further investigation.
An FIR has been registered under BNS sections 316(5) and 61(2).
RBI supersedes New India Coop Bank board; fund misappropriation led to action
Reserve Bank of India superseded the Board of Directors of New India Cooperative Bank Ltd, Mumbai, for a period of 12 months, the central bank said in a statement on Friday, a day after it imposed several restrictions on the lender.
Consequently, the RBI has appointed Shreekant, former Chief General Manager of State Bank of India (SBI) as 'Administrator' to manage the affairs of the bank during this period.
The RBI has also appointed a 'Committee of Advisors' to assist the Administrator in discharging his duties. The members of the Committee of Advisors are Ravindra Sapra (former General Manager, SBI) and Abhijeet Deshmukh (Chartered Accountant).
The action was necessitated "due to certain material concerns emanating from poor governance standards observed" in the Mumbai-headquartered New India Cooperative Bank Ltd.
Customers gathered in hundreds outside Mumbai-headquartered New India Co-operative Bank Limited branches to withdraw their hard-earned savings, soon after the Reserve Bank of India imposed several restrictions on the lender.
Panicky account holders converged outside the bank branches spread across Mumbai city, worried over the fate of their bank savings and lockers.
Late on Thursday, the RBI directed New India Co-operative Bank Limited, Mumbai that it shall not, without prior written approval of the central bank, grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in the discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified by the RBI.
Considering the cooperative bank's present liquidity position, the RBI has directed not to allow the withdrawal of any amount from savings bank or current accounts or any other account of a depositor but is allowed to set off loans against deposits subject to RBI conditions.
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