Mumbai's EOW starts investigation on alleged irregularities in New India Cooperative Bank - World News Network

Mumbai (Maharashtra) [India], February 15 (ANI): The Economic Offences Wing (EOW) of the Mumbai Police on Saturday started investigating the alleged irregularities in the New India Cooperative Bank.
The bank representative has made a complaint about the same to the EOW, following which his statement was recorded.
On February 14, the Reserve Bank of India superseded the Board of Directors of New India Cooperative Bank Ltd, Mumbai, for a period of 12 months, the central bank said in a statement on Friday, a day after it imposed several restrictions on the lender.
Consequently, the RBI has appointed Shreekant, former Chief General Manager of State Bank of India (SBI) as ‘Administrator’ to manage the affairs of the bank during this period. The RBI has also appointed a ‘Committee of Advisors’ to assist the Administrator in discharging his duties. The members of the Committee of Advisors are Ravindra Sapra (former General Manager, SBI) and Abhijeet Deshmukh (Chartered Accountant).
The action was necessitated “due to certain material concerns emanating from poor governance standards observed” in the Mumbai-headquartered New India Cooperative Bank Ltd.
On Friday morning, customers gathered in hundreds outside Mumbai-headquartered New India Co-operative Bank Limited branches to withdraw their hard-earned savings, soon after the Reserve Bank of India imposed several restrictions on the lender.
Panicky account holders converged outside the bank branches spread across Mumbai city, worried over the fate of their bank savings and lockers.
The people ANI spoke to said that bank officials have assured them access to their lockers.
Late on Thursday, the RBI directed New India Co-operative Bank Limited, Mumbai that it shall not, without prior written approval of the central bank, grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in the discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified by the RBI.
Considering the cooperative bank’s present liquidity position, the RBI has directed not to allow the withdrawal of any amount from savings bank or current accounts or any other account of a depositor but is allowed to set off loans against deposits subject to RBI conditions.
The bank can incur expenditure in respect of certain essential items such as salaries of employees, rent, electricity bills, — but only as specified by the RBI.
These directions against the Bank were necessitated due to supervisory concerns emanating from the recent material developments in the bank, and to protect the interest of depositors of the bank, the RBI said, while slapping the restrictions. (ANI)

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