Several customers expressed concern as they gathered outside Mumbai-based New India Co-operative Bank on Friday, a day after Reserve Bank banned the bank from issuing new loans and suspended deposit withdrawals for six months, citing supervisory concerns and the lender’s liquidity position.
“We are clueless as no information is being provided by the bank. I got the information that the bank is allowing customers to operate locker but we have been standing for hours and nothing is happening,” a customer said.
“I deposited money 3-4 days back and at that time the bank did not tell us about any such situation. Our money is deposited in this bank and EMIs are debited from this account. We have no idea what will happen with our money,” another customer said.
Taking strict action, the RBI said the directions were taken due to concerns arising from “recent material developments” at the bank, and to protect the interest of depositors, although did not elaborate on the specifics of these concerns.
The RBI further ordered the co-operative bank not to make any investments or borrow funds and the RBI said that the bank will not, without prior approval of RBI in writing, grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits.
Expressing concern over their deposits in the bank, several customers reached the bank branch and enquired about their deposits and withdrawals.
Seema Waghmare, one of the customers said she deposited money just on February 13 but they did not say anything. “They should have told us that this was going to happen… They are saying that we will get our money within 3 months… We have EMIs to pay, we have no idea how we will do all of that,” she said.
Varsha, one of the cuastomers, said there is a wedding at home next month, she had a leg operation, still she has to go and stand in line for hours. “I have to take out my jewelry from my locker… I have Rs 2 lakh FD in the bank, but if I can’t break it now, I will have to mortgage the jewelry… I have Rs 10k to 15k in my savings account… but I worry about it much,” she said.
Mohammad Rehman Ansari, his wife and children have saved Rs 86,000 in the bank and now they cannot withdraw it and he cried while elaborating his story.
Mithila Yadav who drives a rickshaw, had deposited Rs 2 lakh in the bank by adding every single penny. “Now I don’t know how to manage the expenses of the house… As soon as I found out, I left everything and came to the bank,” he said.
After the ban imposed by the RBI on the New India Cooperative Bank, a large number of account holders have thronged the Vijayanagar branch in Andheri, Mumbai.
And the anxious customers are asking when will they get their money backand if they can’t withdraw money for 90 days, how much can they withdraw after that?
Those who are waiting outside the bank are given a coupon by the officials and with the help of which they can open their lockers, bank officials said.
