India's central bank said on Friday it has taken control of the board of New India Co-operative Bank for 12 months, a day after its depositors were barred from withdrawing money from the lender. The action,

However, RBI stated that the bank is allowed to set off loans against deposits subject to the conditions stated in the directions

These directions came into effect on from the close of business on Thursday and are expected to remain in force for a period of six months, subject to review.

The Reserve Bank of India has started to ease curbs on non-banking financial companies (NBFCs) and banks after they improved their compliance following a series of supervisory restrictions. High interest rates and tighter regulations have been cited as contributors to weak demand and a slowdown in India's economic growth,

Reserve Bank of India (RBI) has issued a notice to New India Co-operative Bank imposing restrictions, which prohibits it from issuing new loans or allowing withdrawals of deposits due to ongoing supervisory concerns.

This is the first major action against a co-operative bank in Maharashtra after the collapse of Punjab and Maharashtra Co-operative Bank due to large scale fraudulent loans.

RBI has taken control of New India Co-operative Bank, citing poor governance, and imposed withdrawal limits, sparking panic among depositors

Mumbai Police’s Economic Offense Wing (EOW) has launched an investigation into the alleged `irregularities` at New India Cooperative Bank, official sources said on Friday. A bank representative filed a complaint with the EOW,

A day after imposing several restrictions on city-based New India Co-operative Bank, the RBI on Friday superseded its board citing poor governance standards. A large number of bank's customers had gathered at its branches on Friday following RBI's restrictions,