New India Cooperative Bank: The Reserve Bank has allowed New India Cooperative Bank to withdraw money. After this, a long queue was seen in front of the bank on Thursday morning.
Bank Withdrawal Limit: The Reserve Bank of India (RBI) has given a big relief to lakhs of account holders of New India Co-operative Bank Limited, Mumbai. RBI has allowed these account holders to withdraw Rs 25,000 from their amount deposited in the bank. After this announcement of RBI, thousands of customers were seen standing in long queues outside the bank branch since Thursday morning. On February 24 itself, RBI had allowed the account holder to withdraw up to Rs 25,000.
This exemption has been given to the customers of the co-operative bank almost two weeks after the central bank imposed strict restrictions including a complete ban on withdrawals. On February 13, RBI imposed an All-Inclusive Direction (AID) on the bank, preventing any withdrawal due to concerns over its liquidity and financial stability. RBI had banned both deposits and withdrawals from the bank.
Complete relief to 50 percent customers
RBI has now decided to give partial relief to the depositors after reviewing the cash position of the bank. It said that more than 50% of the depositors will be able to withdraw their balance in full. The remaining 50 percent of account holders can make full withdrawal up to Rs 25,000 or if it is less than their available balance. Withdrawal can be done through bank branches and ATMs.
Big fraud was going on in the bank
Big fraud was going on in the branch of New India Cooperative Bank located in Prabhadevi, Mumbai. The bank had the capacity to keep Rs 10 crore at a time, but on the day of RBI inspection, Rs 122.028 crore was shown in the cash in hand book. The Economic Offenses Wing (EOW) of Mumbai Police is investigating the fraud of Rs 122 crore in New India Cooperative Bank and so far three people including two former top officials of the bank have been arrested.
Rs 122 crore missing from vault
The RBI inspection team visited the bank’s corporate office branch in Prabhadevi on February 11, where they found that Rs 122 crore was missing from the vault. The balance sheet of the corporate office branch showed Rs 133.41 crore in the bank’s vaults at Prabhadevi and Goregaon branches and the balance sheet of the Prabhadevi branch on that day showed a figure of Rs 122.028 crore. The vault had a cash storage capacity of only Rs 10 crore, while only Rs 60 lakh was found in the vault.
