RBI Curbs on New India Co-operative Bank: DICGC Cover
Why in the news
Thousands of depositors are stuck after the RBI froze withdrawals at New India Co-operative Bank over an alleged ₹122 crore fraud.
Key facts
- RBI restrictions halt withdrawals for six months, after a fraud complaint went to the Economic Offences Wing of Mumbai Police.
- DICGC (Deposit Insurance and Credit Guarantee Corporation) has begun the claim process; cover is up to ₹5 lakh per depositor.
- Most depositors are covered; many have filed claims, though some must wait about three months for payment.
- Bank general manager Hitesh Mehta was arrested.
Concerns
- Seniors and people relying on monthly withdrawals fear emergencies such as medical bills.
- Depositors must find other banking options while funds stay blocked.
- Questions arise over supervision of the bank.
Exam angle
- Insurer: DICGC; cover limit: ₹5 lakh.
- Alleged fraud: ₹122 crore; regulator: RBI.