The RBI detected a ₹122 crore fraud in New India Co-operative Bank’s Mumbai branches.
Former GM of HSBC and the bank’s ex-chairman were arrested by the EOW.
Bank allegedly moved funds into shell accounts via fake FDs and loans.
RBI superseded the board for 12 months and appointed an administrator.
Withdrawal limit set at ₹50,000 per account until forensic audit completes.
Depositors held protests outside the Andheri East branch, demanding compens
ation.
This is India’s second major co-op bank scam in under 5 years after PMC Bank.
RBI may initiate merger or license revocation if resolution fails.
Ministry of Finance ordered a report by August 15 on co-op bank re
gulation.