New India Co-operative Bank case: Depositors push for revival or merger

Thane: Depositors of scam-hit New India Co-operative Bank met RBI-appointed advisors and senior officials of the apex bank, demanding a concrete roadmap for the bank's revival or merger and better protection for depositors' interests, as per a release.

The NICB Depositors' Foundation is demanding urgent measures to restore depositor confidence and alleviate the financial strain faced by thousands of account holders since RBI imposed restrictions on February 13, 2025.

Mumbai Police has so far arrested eight persons in connection with the Rs 122 crore New India Cooperative Bank embezzlement case.

The foundation president TN Raghunatha said a delegation of depositors met RBI-appointed advisors Ravindra Chavan and Ravindra Sapra at the bank's corporate office in Prabhadevi on Friday.

During the discussion, the advisors offered a cautiously optimistic outlook on the bank's future, Raghunatha stated.

"The advisors were positive about the prospects of reviving the bank. They confirmed that multiple options, including a potential merger, were being explored, though specifics could not be shared at this stage," he said.

The advisors assured the delegation that their concerns and written representation would be forwarded to the RBI along with their own recommendations.

The foundation also demanded raising the withdrawal limit from Rs 25,000 to Rs 1.5 lakh per account holder, citing the severe hardship being faced by depositors, especially senior citizens and co-operative housing societies.

The delegation also met three Assistant General Managers of RBI's Supervision Department at the central bank's Maker Chambers office in Cuffe Parade.

"The RBI officials were receptive and assured us that they would take up our concerns with higher authorities. They acknowledged the need for an official update from the RBI regarding the bank's current status," said Rajani Pitale, Vice President of the Foundation.

The delegation submitted a copy of their representation to the Cuffe Parade police station.