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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

Centre asks Blinkit, Zepto and Swiggy to stop 10-minute delivery claims

The Centre has urged Blinkit, Zepto and Swiggy to remove 10-minute delivery claims, citing safety concerns for delivery partners, government sources said.

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10 minutes delivery

The Centre has asked quick commerce platforms such as Blinkit, Zepto and Swiggy to remove claims related to 10-minute deliveries, citing concerns over the safety of delivery partners, according to government sources.

The issue was discussed during a meeting between Union Labour Minister Mansukh Mandaviya and representatives of major food and grocery delivery aggregators. Executives from platforms including Zomato, Swiggy, Blinkit and Zepto were present at the meeting, sources said.

Safety of delivery partners discussed in meeting

Government sources indicated that the minister raised concerns about strict delivery timelines and their potential impact on the safety and well-being of delivery partners. Platforms were advised to prioritise safe working conditions instead of promoting ultra-fast delivery promises.

The discussion focused on delivery expectations, rider pressure and the broader responsibility of aggregators towards their workforce, sources added.

Blinkit revises tagline after government intervention

Following the meeting, Blinkit has revised its marketing tagline. The platform earlier promoted “10,000 plus products delivered in 10 minutes” but has now changed it to “30,000 plus products delivered at your doorstep,” according to sources.

The revision reflects a shift away from highlighting delivery speed as a key promise, in line with the concerns raised during the discussions.

The government is expected to continue engaging with aggregators on labour welfare and safety-related issues, sources said.

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India News

AI errors in voter list digitisation causing hardship during SIR, Mamata writes to EC chief

Mamata Banerjee has written to the chief election commissioner alleging that AI-driven digitisation errors in electoral rolls are causing hardship, harassment and distress to genuine voters during the SIR process in West Bengal.

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mamta banerjee

West Bengal Chief Minister Mamata Banerjee has once again written to Chief Election Commissioner Gyanesh Kumar, alleging that errors arising from AI-driven digitisation of the 2002 electoral rolls are causing widespread hardship to genuine voters during the ongoing Special Intensive Revision (SIR) exercise in the state.

In her fifth letter since the SIR process began, Banerjee claimed that the use of artificial intelligence tools to digitise older voter lists led to serious inaccuracies in electors’ personal details. According to her, these errors have resulted in large-scale data mismatches, with many genuine voters being wrongly flagged as having “logical discrepancies”.

The chief minister accused the Election Commission of disregarding statutory processes that had been followed over the past two decades. She said voters were now being forced to re-establish their identity despite corrections having been made earlier through quasi-judicial hearings.

Calling the approach arbitrary and illogical, Banerjee alleged that it went against the constitutional spirit by effectively disowning the commission’s own past actions and mechanisms. She further claimed that voters submitting documents during the SIR exercise were not being given proper acknowledgements, terming the procedure “fundamentally flawed”.

Raising concerns over the nature of hearings, Banerjee said the SIR process had become largely mechanical and overly dependent on technical data, lacking sensitivity, human judgment and compassion. She argued that such an approach undermines democratic values and the constitutional framework.

Highlighting the human impact of the exercise, the chief minister claimed that the revision process had already seen 77 deaths, four suicide attempts and 17 cases of hospitalisation. She attributed these incidents to fear, intimidation and excessive workload caused by what she described as an unplanned exercise by the Election Commission.

Banerjee also criticised the treatment of several eminent citizens, alleging that they were subjected to harassment during the process. She further expressed concern over the handling of cases involving women voters, particularly those who had changed their surnames after marriage or shifted to their matrimonial homes.

According to her, women electors were being questioned and summoned to prove their identity, reflecting a lack of social sensitivity and amounting to an insult to women and genuine voters. She questioned whether a constitutional authority should treat half of the electorate in such a manner.

Urging immediate corrective steps, Banerjee called on the Election Commission to address the issues arising from the SIR exercise to end what she described as harassment and agony for both citizens and officials, and to safeguard democratic rights.

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Communist Party of China delegation visits BJP headquarters in Delhi

A delegation from the Communist Party of China, led by Vice Minister Sun Haiyan, visited the BJP headquarters in Delhi and held discussions on inter-party communication.

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China delegation visits BJP office

A delegation from the Communist Party of China (CPC), led by Sun Haiyan, Vice Minister of the International Department of the CPC Central Committee (IDCPC), visited the Bharatiya Janata Party (BJP) headquarters in Delhi on Monday.

During the visit, the Chinese delegation held discussions with a BJP team headed by party general secretary Arun Singh. The talks focused on ways to advance inter-party communication and engagement between the BJP and the CPC.

Sharing details of the meeting, BJP foreign affairs department in-charge Vijay Chauthaiwale said the interaction involved an in-depth exchange on strengthening party-to-party dialogue. He confirmed the visit in a post on social media, stating that the CPC delegation was received at the BJP head office as part of ongoing inter-party interactions.

The Chinese Ambassador to India, Xu Feihong, was also present during the meeting, accompanying the CPC delegation.

According to Chauthaiwale, the visit was led by Sun Haiyan in her capacity as Vice Minister of the IDCPC, underscoring the importance attached to party-level exchanges between the two sides.

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