India's central bank said on Friday it has taken control of the board of New India Co-operative Bank for 12 months, a day after its depositors were barred from withdrawing money from the lender.

The Reserve Bank of India (RBI) has placed several restrictions on Mumbai-based New India Co-operative Bank. Amid regulatory concerns, the central bank prohibited depositors from taking any money out of the bank and limited lenders from making any advances or extending any loans.

Reserve Bank of India (RBI) has issued a notice to New India Co-operative Bank imposing restrictions, which prohibits it from issuing new loans or allowing withdrawals of deposits due to ongoing supervisory concerns.

The Reserve Bank of India (RBI) has imposed strict restrictions on New India Co-operative Bank Limited in Mumbai, citing supervisory concerns over its financial position. As per the restrictions which are effective from the close of business on 13 February 2025,

Account holders in thousands gathered outside Mumbai-headquartered New India Co-operative Bank Limited branches to withdraw their hard-earned savings, soon after the Reserve Bank of India put several restrictions on the lender.

The Reserve Bank of India imposed multiple restrictions on the Mumbai-based New India Co-operative Bank on Thursday. The central bank barred depositors from withdrawing any funds from the bank, restricted the lender from granting any advances or renewing any loans,