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RBI halts New India Co-operative Bank’s operations

RBI imposes a series of restrictions on Mumbai’s New India Co-operative Bank, halting withdrawals and loans. Customers face a financial crisis with limited access to funds.

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The Reserve Bank of India has imposed restrictions on New India Co-operative Bank in Mumbai, halting withdrawals, loans, and deposits. Customers left worried.

In a shocking move, the Reserve Bank of India (RBI) has imposed stringent restrictions on Mumbai’s New India Co-operative Bank, citing concerns over the bank’s financial health. This action has left customers unable to access their accounts or withdraw funds, creating panic among account holders. Here’s a breakdown of the situation and what it means for customers and the bank.

RBI’s decision to impose restrictions

As of February 13, 2025, the RBI has barred New India Co-operative Bank from offering new loans, accepting fresh deposits, or renewing existing loans. In addition, the bank is not allowed to make any payments or sell its assets. These restrictions will remain in effect for the next six months, with the RBI highlighting that the financial condition of the bank is not secure.

The RBI’s actions come amid reports of financial irregularities within the bank, which have raised serious questions about its solvency. These measures are intended to safeguard the interests of customers and to prevent further financial instability.

What does this mean for the customers?

While depositors are protected under the Deposit Insurance Scheme (DIS), which guarantees up to Rs 5 lakh in case of the bank’s collapse, the immediate concern is the inability to withdraw funds. Customers across Mumbai have been lining up at branches in desperation, hoping to withdraw their savings, but the restrictions prevent them from accessing their accounts.

Social media has been flooded with images and videos of long queues outside the bank, with customers expressing frustration and anxiety. The closed doors of the bank and the absence of staff to handle the situation have only fueled the unrest.

How does the Deposit Insurance Scheme help?

Though depositors are covered under the Deposit Insurance Scheme, which ensures that up to Rs 5 lakh of their deposits are protected, many account holders may face difficulties accessing funds in the interim. This has led to increasing concerns among smaller depositors who rely on their savings for daily expenses.

The RBI’s intervention is aimed at providing the bank time to resolve its financial issues, but it remains unclear how long the restrictions will last or when normal banking operations will resume.

What caused the RBI intervention?

The primary reason for the RBI’s action stems from the bank’s questionable financial status. According to sources, there are ongoing concerns about the bank’s ability to meet its financial obligations, and questions have been raised about whether the institution has enough liquidity to sustain itself.

By halting new loans and deposits, the RBI aims to prevent further financial instability and ensure that the bank does not take on additional risk while working to stabilize its operations.

Customer reactions and growing concerns

Customers of the New India Co-operative Bank have been left in limbo, with many turning to social media to voice their concerns. The closure of the bank’s branches and the ban on withdrawals have created a sense of uncertainty. It’s clear that this development has caught many customers off guard, leading to widespread unease.

As the situation develops, many are questioning the future of the bank and what steps will be taken to ensure that customer interests are protected. For now, all eyes remain on the Reserve Bank of India to provide further clarity and guidance.

India News

Rahul Gandhi, Rajnath Singh clash in Lok Sabha over ex-Army chief’s unpublished book on Ladakh

Lok Sabha proceedings were disrupted after Rahul Gandhi cited an unpublished book by former Army chief General MM Naravane on the Ladakh stand-off, drawing objections from Rajnath Singh and other BJP leaders.

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Rahul Gandhi

A sharp confrontation unfolded in the Lok Sabha on Monday after Leader of Opposition Rahul Gandhi referred to an unpublished book by former Army chief General MM Naravane while speaking on the 2020 India-China Ladakh stand-off, prompting strong objections from treasury benches.

Rahul Gandhi began his address by holding a printout of a magazine article that carried an essay on General Naravane’s yet-to-be-published memoir, Four Stars of Destiny. The reference immediately drew an intervention from Defence Minister Rajnath Singh, who objected to the citation, saying quoting an unpublished book violated parliamentary rules.

Objections from treasury benches

Rajnath Singh demanded that the Leader of Opposition place the book before the House, arguing that since the memoir had not been formally published, its contents could not be cited during proceedings. The objection was echoed by Home Minister Amit Shah, who questioned how references could be made to material that was not publicly available.

Parliamentary Affairs Minister Kiren Rijiju went a step further, suggesting that the House should deliberate on action against members who do not comply with the Speaker’s rulings.

As Rahul Gandhi persisted, repeatedly referring to “Chinese tanks” while discussing the eastern Ladakh situation, the opposition from BJP members intensified, leading to sustained disruptions.

Opposition support and continued disruptions

Samajwadi Party chief Akhilesh Yadav backed Rahul Gandhi, stating that issues concerning China were sensitive and that the Leader of Opposition should be allowed to present his views in the House.

Responding to the objections, Rahul Gandhi questioned the resistance to his remarks, asking what in the book was causing such concern. He maintained that both the article and the contents he was quoting were “100 per cent authentic.”

The Congress leader also said he had not intended to raise the issue but felt compelled to do so after BJP MP Tejasvi Surya questioned the patriotism of the Congress and its leadership.

Government, Congress trade charges

Government sources accused Rahul Gandhi of setting a dangerous precedent by citing material from an unpublished book, alleging that such references could be misused to make unverified claims on the floor of Parliament.

Congress MP Priyanka Gandhi defended her brother, saying he was not attempting to defame the Army and was merely reading an excerpt attributed to the former Army chief. She accused the ruling party of resisting discussion whenever uncomfortable issues surfaced.

House adjourned amid chaos

The repeated interruptions forced Lok Sabha Speaker Om Birla to adjourn the House till 3 pm. When proceedings resumed, similar scenes played out as Rahul Gandhi again attempted to speak on the subject, leading to further disruptions and another adjournment.

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P Chidambaram avoids commenting on Trump’s dead economy remark echoed by Rahul Gandhi

Chidambaram stays silent on Trump’s ‘dead economy’ remark echoed by Rahul Gandhi as Congress critiques Union Budget 2026.

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P Chidambaram

Finance Minister Nirmala Sitharaman on Sunday presented her ninth consecutive union budget, stopping just short of Morarji Desai’s record of ten.

Congress MP P Chidambaram, however, avoided commenting on the ‘India is a dead economy’ statement made by former US President Donald Trump last July, which was later echoed by Rahul Gandhi.

Speaking to reporters after reviewing the budget, Chidambaram said he could not respond as he lacked the full context of Trump’s original remarks.

The comment by Trump followed India’s continued purchase of Russian crude oil, which the US had criticized as indirectly funding military action in Ukraine. Trump imposed a 25 per cent penalty tariff on Indian imports and added: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”

Rahul Gandhi later supported the statement, saying, “He is right, everybody knows this except the Prime Minister and Finance Minister. I am glad President Trump stated a fact…”

The remark sparked a political debate, with BJP leaders criticizing Gandhi, while some Congress members, including Rajya Sabha MP Rajiv Shukla, called the statement “completely wrong.”

Ahead of the budget, Gandhi had highlighted the impact of US tariffs on small textile businesses, noting on X: “50 per cent US tariffs are badly hurting textile exporters. Job losses, shutdowns… are reality of our ‘dead economy’.”

The debate gained traction following the budget announcement, which did not offer immediate relief to middle-class taxpayers and saw markets react sharply, with the Sensex closing 1,500 points lower on Sunday.

Chidambaram, as usual, led Congress’ critique of the budget, pointing to a decrease in capital expenditure as a percentage of GDP from 3.2 per cent in FY25 to 3.1 per cent, despite the proposal of Rs 12.2 lakh crore for capex. He added, “Revenue receipts short by Rs 78,086 crore… total expenditure short by Rs 1,00,503 crore… revenue expenditure short by Rs 75,168 crore… capex was cut by Rs 1,44,376 crore… not a word was said to explain this…”

Rahul Gandhi echoed the criticism, highlighting issues such as unemployment, farmers’ distress, declining household savings, and low investment. “A budget that refuses course correction and is blind to India’s real crises,” he said on X.

Responding to the criticism, Finance Minister Sitharaman said, “With due respects, I don’t know what course correction he is referring to. The economy and its fundamentals are strong.”

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Earthquake of 4.6 magnitude hits Andaman and Nicobar Islands

A 4.6 magnitude earthquake struck the Nicobar Islands at 10 km depth, highlighting the region’s seismic activity and potential risks from shallow tremors.

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An earthquake measuring 4.6 on the Richter scale struck the Andaman and Nicobar Islands early Monday at around 3:30 am, the National Center of Seismology (NCS) reported.

According to the NCS, the tremor occurred at a shallow depth of 10 km. The earthquake’s epicenter was located at a latitude of 9.03° North and a longitude of 92.78° East, placing it in the Nicobar Islands region.

In a post on X, the NCS confirmed the details: “EQ of M: 4.6, On: 02/02/2026 03:31:12 IST, Lat: 9.03 N, Long: 92.78 E, Depth: 10 Km, Location: Nicobar Islands.”

The Andaman and Nicobar Islands fall under Seismic Zone V, according to India’s seismic zoning map (1893-1984), making them one of the most earthquake-prone regions in the world. Historically, the islands have experienced several major earthquakes, including the devastating tremor on December 26, 2004, which caused significant land displacement and triggered tsunami waves, resulting in heavy loss of life and property.

Experts note that shallow earthquakes, like the one recorded on Monday, can be more hazardous than deeper ones. Seismic waves from shallow quakes travel a shorter distance to the surface, causing stronger ground shaking and posing higher risks to structures and human safety.

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