Depositors of Scam-Hit New India Co-operative Bank Stage Protest Over Delayed Fund Access

The New India Co-operative Bank (NICB) has been grappling with severe challenges since the Reserve Bank of India (RBI) imposed restrictions on its operations on 13 February. 

The situation stems from a ₹122 crore embezzlement case, leading to the arrest of eight individuals so far. This financial scandal has left thousands of depositors anxious about the safety and accessibility of their savings.

The Protest in Thane: A Call for Urgent Action

The depositors under the banner of the NICB Depositors’ Foundation organised a protest in Thane’s Majiwada area. Marching towards the bank’s branch, they carried placards highlighting their demands. Their primary call was for decisive measures to either revive the struggling institution or merge it with a stable financial entity to safeguard depositor interests.

Read More: New India Co-operative Bank Crisis: Depositors Urge Revival or Merger

Key Demands Presented by Depositors

During the protest, a delegation of depositors met the branch manager and submitted a detailed memorandum. The document raised several pressing concerns:

• Withdrawal Limit Increase: Depositors requested an increase in the withdrawal cap from ₹25,000 to ₹1.5 lakh, citing ongoing financial hardships.

• Full Repayment of Fixed Deposits: A demand was made for full repayment of fixed deposits beyond the ₹5 lakh insurance coverage under the Deposit Insurance and Credit Guarantee Corporation (DICGC).

• Audit Updates: They sought updates on the forensic and special audits conducted after the fraud surfaced.

• Recovery of Embezzled Funds: Depositors urged authorities to expedite the recovery of funds from properties seized from the accused.

• Assessment of Non-Performing Assets: Concerns were raised over the impact of non-performing assets on the bank’s financial health.

Persistent Concerns and Lack of Clarity

The memorandum highlighted that, despite previous meetings with RBI-appointed advisors and senior bank officials, considerable ambiguity remains regarding the bank’s revival prospects. Depositors voiced their fears about the long-term safety of their funds, especially for sums exceeding the insured limit.

Appeal for Timely Intervention

The protestors urged the bank’s management to immediately escalate their concerns to the NICB Administrator and seek direct intervention from the RBI. One of the key appeals was for the RBI to lift the restrictions and announce a structured plan for either revival or merger before the DICGC begins disbursing insurance payouts scheduled for 14 May.

Conclusion

Depositors cautioned that if authorities continued to delay remedial action, they would intensify their agitation. The Foundation emphasised that prolonged uncertainty is deepening the financial and emotional distress faced by depositors, many of whom depend on their savings for day-to-day survival.

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