Bank Closed: The Reserve Bank of India (RBI) has taken action against New India Co-operative Bank. This action has been taken due to allegations of money embezzlement by bank employees. More than 90 percent of the 1.3 lakh depositors of this Mumbai-based bank have deposits up to Rs 5 lakh in their accounts. In such a situation, they will be able to get their entire money through deposit insurance.
Misappropriation of funds by employees
According to sources, RBI had found some discrepancies in the investigation of the accounts of New India Co-operative Bank. After this, the Chief Compliance Officer (CCO) of the bank contacted the Economic Offenses Wing of Mumbai Police on Thursday. This case is being told to be related to the misuse of money by some employees of the bank. Sources have not disclosed the total amount or the identity of the people involved in it. After the ban imposed by RBI, people are continuing to reach the bank. They are reaching to withdraw their money.
Depositors will not be able to withdraw money
On Thursday, RBI had imposed several restrictions on New India Co-operative Bank. This also includes withdrawal of money by depositors. The Reserve Bank’s instructions will remain in force for six months. RBI said, “In view of the current cash position of the bank, it has been instructed not to allow withdrawal of any amount from the depositor’s savings bank or current accounts or any other account.” Money can be withdrawn for the expenditure of some essential things like salary of bank employees, rent and electricity bills.
RBI imposed fine on two banks
Here, RBI has imposed a total fine of Rs 68.1 lakh on Nainital Bank and Ujjivan Small Finance Bank for violating the rules. RBI said in a statement that Nainital Bank Limited was fined Rs 61.40 lakh for not following some instructions on interest rates on loans and customer service in banks. Apart from this, a fine of Rs 6.70 lakh has been imposed on Ujjivan Small Finance Bank for not following some rules issued by RBI.
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