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The Reserve Bank of India has appointed former Chief General Manager of State Bank (SBI) Srikanth as a ‘Administrator’ to manage the bank affairs.
The RBI on Thursday imposed several sanctions on the lender, including the refund of funds by depositors amid supervisory concerns.
A day after several restrictions on the city-based New India-operative BankThe RBI on Friday ended its board citing standards of poor governance. A large number of bank customers gathered in its branches on Friday. reserve Bank of IndiaThe restriction, which included once on issuing new loans and suspending the deposit withdrawals for six months. The bank has 28 branches, mostly located in the Mumbai region.
The Reserve Bank of India (RBI) said in a statement that it has appointed former Chief General Manager of State Bank (SBI) Srikanth as a ‘Administrator’ to manage the bank affairs.
The RBI said in a statement that the Board of Directors of New India Co-operative Bank, Mumbai has been abolished for 12 months.
It has also appointed a ‘Committee of Advisors’ to help the administrator in discharging its duties. The committee of advisors is Ravindra Sapra (former General Manager, SBI) and Abhijeet Deshmukh (Chartered Accountant).
He said, “Some materials emanating from poor governance standards seen in the bank require action,” said this.
On Thursday, the RBI imposed several sanctions on the lender, including the withdrawal of funds by depositors amid supervisory concerns.
The ban came into force from close to trade on Thursday and will remain in force for a period of six months and is subject to review.
The RBI imposed a ban, saying, “Given the position of the bank’s current liquidity, the bank has been directed not to allow them to withdraw any amount from a savings bank or current accounts or any other account of the deposit.”
However, the lender has been allowed to determine the loan against the deposits under the conditions stated in the RBI directions. It can spend some essential commodities such as salaries, rent and electricity bills of employees.
The RBI further stated that on February 13, 2025 close to business, bank will invest, without prior approval, without renewing or renewing any loan and advances, and anyone will earn liabilities including acceptance of fresh deposits. .
It further stated that instructions were required to protect the bank deposits due to supervisory concerns emanating from recent physical development in the bank.
Apart from this, the eligible deposit deposits will be entitled to receive the deposit amount of deposits up to Rs 5 lakh from deposit insurance and credit guarantee corporation (DICGC).
(This story has not been edited by News18 employees and a syndicated news agency has been published from feed – PTI,
