The Reserve Bank of India (RBI) has imposed strict restrictions on Mumbai-based New India Co-operative Bank, barring it from issuing new loans, accepting fresh deposits, or allowing withdrawals for six months.

The Reserve Bank of India has constituted a Committee of Advisors to assist the administrator, comprising Ravindra Sapra, former General Manager at SBI, and Abhijeet Deshmukh, a Chartered Accountant.

These restrictions came into effect from the end of business hours on Thursday (13 February) and will remain in force for a period of six months, subject to the RBI’s review.

India's central bank said on Friday it has taken control of the board of New India Co-operative Bank for 12 months, a day after its depositors were barred from withdrawing money from the lender. The action,

The Reserve Bank of India (RBI) on February 14 announced that it has superseded the board of directors of New India Co-operative Bank for a period of 12 months. This comes a day after the central bank barred the Mumbai-based bank from giving out new loans, accepting new deposits and more for a period of six months.

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.

The RBI has said depositors cannot withdraw funds from their savings, current or any other account in the six-month period when the restrictions will remain in place

Panic gripped customers of New India Co-operative Bank after the Reserve Bank of India (RBI) imposed severe restrictions on withdrawals for six months due to concerns over the bank’s financial stability.