The Reserve Bank of India (RBI) has imposed serious restrictions on the operations of New India Co-operative Bank Limited. The Mumbai-based bank has been barred from issuing new loans, accepting fresh deposits. Also withdrawals are suspended for six months as well. The RBI’s action comes amid growing concerns over the bank’s liquidity and its financial stability. These measures were put in place to safeguard the interests of the depositors, as the bank has been struggling with severe financial losses in recent years. Fraud Allegations Against Ex-General Manager Mumbai Police’s Economic […]
Police probe former GM of New India Co-operative Bank for involvement in Rs 122-crore fraud.
The Reserve Bank of India (RBI) has imposed serious restrictions on the operations of New India Co-operative Bank Limited. The Mumbai-based bank has been barred from issuing new loans, accepting fresh deposits. Also withdrawals are suspended for six months as well. The RBI’s action comes amid growing concerns over the bank’s liquidity and its financial stability. These measures were put in place to safeguard the interests of the depositors, as the bank has been struggling with severe financial losses in recent years.
Mumbai Police’s Economic Offences Wing (EOW) is investigating former General Manager of New India Co-operative Bank, Hitesh Pravinchand Mehta. Mehta has been accused of embezzling a massive Rs 122 crore from the bank during his tenure. The alleged fraud occurred between 2020 and 2025. It is believed to have involved misappropriation of funds at the Dadar and Goregaon branches.
According to the bank’s complaint to the EOW, Mehta exploited his position to siphon off large sums. The police have already registered a case based on this complaint, with the Chief Accounts Officer of the bank filing the initial report. The case is being further investigated by the EOW.
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The troubles for New India Co-operative Bank are not just limited to fraud allegations. The bank has been facing significant financial challenges over the last few years. Its annual report revealed losses of Rs 227.8 million in the financial year ending March 2024. This follows an even larger loss of Rs 307.5 million in the previous year.
Despite these mounting losses, the fraud allegations have taken center stage, prompting the RBI to intervene. The central bank’s actions reflect urgency with which they are dealing with situation to protect depositors and prevent further financial damage to bank.
The Economic Offences Wing is taking the matter seriously and has called Mehta in for questioning. He has responded to the summons and appeared at the EOW office for further investigations. The police suspect that Mehta may not have acted alone in this scam. They believe that other individuals might have been involved in facilitating the fraud, which has caused significant damage to bank’s finances.
The RBI’s decision to limit the bank’s operations is a direct consequence of the bank’s financial troubles and the ongoing investigations into the fraud. The RBI’s main concern is to protect the interests of the depositors, who may face severe risks if the bank’s operations remain unchecked. The restrictions placed on the bank are aimed at stabilizing its operations. While also preventing any further damage to its liquidity position.
The case of New India Co-operative Bank serves as a reminder of the critical role that regulatory bodies like the RBI play in ensuring the safety of public deposits. As investigations continue into the Rs 122 crore fraud, the focus remains on holding those responsible accountable while working toward restoring the bank’s financial stability.
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