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Informist, Friday, Feb. 14, 2025

--RBI: Superseded board of New India Cooperative Bank for 12 months from Fri 

--RBI: Appointed Shreekant as administrator of New India Cooperative Bank 

--RBI: Appointed 2 members to committee of advisors of New India Co-op Bank 

--CONTEXT: RBI stopped New India Co-op Bank from loan, deposit activity Thu 

MUMBAI – A day after imposing business restrictions on New India Cooperative Bank, the Reserve Bank of India superseded the bank's board of directors on Friday for 12 months. The RBI has appointed Shreekant, former chief general manager of State Bank of India, as 'Administrator' to manage the bank's affairs during the year, the central bank said in a press release.

The RBI has also appointed a 'Committee of Advisors', with Ravindra Sapra and Abhijeet Deshmukh as members, to assist the Administrator. Sapra is a former general manager of SBI and Deshmukh is a chartered accountant.

The banking regulator cited concerns over poor governance standards at New India Cooperative Bank for its action. On Thursday, the RBI banned the cooperative bank from granting or renewing loans, making investments, incurring liabilities, including borrowing of funds, and accepting fresh deposits without prior approval of the RBI. It also banned the bank from selling or transferring any of its properties or assets. The restrictions would be in place for six months, the RBI had said.

Due to New India Cooperative Bank's liquidity conditions, the RBI had also directed it against allowing withdrawal of any amount from the savings bank or current accounts but allowed setting off loans against deposits, subject to RBI guidelines. However, eligible depositors would be entitled to receive the deposit insurance claim amount on deposits up to INR 500,000, the RBI had said.  End

Reported by Sourabh Kumar

Edited by Ashish Shirke

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