Cooperative Bank Faces RBI Action Over: Mumbai Police has registered a case against Hitesh Praveen Chand Mehta, former managing director of New India Co-operative Bank, who embezzled Rs 122 crore from the bank’s treasury. According to news agency ANI, Hitesh Praveen Chand Mehta had misused it while holding his post from 2020 to 2025. Let us tell you, that Mehta had the management work of Dadar and Goregaon branches.
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Cooperative Bank Faces RBI Action: On Whose Complaint Was the Case Registered?
The Chief Account Officer of New India Co-operative Bank had complained to Dadar Police Station. After which this case was registered. Police suspect that Mehta’s friends are also involved in this whole matter. Therefore, the investigation of the entire matter has been handed over to EOW.
Let us tell you, that a case has been registered under sections 316(5) and 61(2) of the Indian Judicial Code.
RBI’s action Because of the problems arising in governance, the Reserve Bank of India (RBI) has taken strict action against this bank. On Thursday, RBI banned this bank from giving or renewing loans without the approval of the Central Bank. Besides, RBI has also imposed a ban on depositing new deposits or making payments.
Just one day later, the Reserve Bank of India decided to remove the Board of Directors. At the same time, the responsibility of running the bank has been entrusted to the former General Manager of the State Bank of India (SBI) Shrikant.
The Reserve Bank of India has formed a committee to help them. Which includes former SBI MD Ravindra Sapra and chartered accountant Abhijeet Deshmukh. Let us tell you, that the Reserve Bank of India has said that the administration of the bank was not running as per the standards. Due to which intervention had to be taken.
Cooperative Bank Faces RBI Action: RBI’s Action Because of the Current Cash Situation
The Reserve Bank said that because of the current cash position of the bank, it has been directed not to allow withdrawal of any amount from the savings bank or current accounts or any other account of the depositor. However, spending on some essentials like salaries, rent, and electricity bills is allowed.
Cooperative Bank Faces RBI Action: RBI’s Ban Will Remain Effective for 6 Months
RBI will continue to monitor the banking situation and modify these instructions to ensure the protection of depositors’ interests. These restrictions will remain in effect for six months from February 13, 2025.
Depositors will be able to take claims up to Rs 5 lakh RBI said that eligible depositors will be entitled to receive deposit insurance claim amount up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation. At the end of March 2024, the cooperative bank had deposits of Rs 2436 crore.
Modi magic!
— Jagrup Singh Parmar (@JagrupParmar) February 14, 2025
One more Bank goes down!!
RBI bans transactions of New India Cooperative Bank for 6 months, Mumbai. pic.twitter.com/dXtVN5m9Z1
New India Co-operative Bank
- Established-1970
- Branch -30
- Operate by – Mumbai, Thane, Surat &Pune
- Sheldul Bank became – 1 November 1990
- Multi-state status – 22 October 1999
- Start of all banking operations – 2004
- First Visa debit card launch -2009
- Bank office setup – 2009
- Establishment of customer care unit – 2010
- Internet banking launched -2010
- Deposit till March 2024 – 2436 crore.
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