A day after barring New India Cooperative Bank from accepting fresh deposits, offering loans, and making investments, the Reserve Bank of India (RBI) today superseded the board of directors of the lender and appointed former State Bank of India (SBI) CGM Shreekant as the administrator of the bank.
The RBI also appointed a ‘Committee of Advisors’ to assist the Administrator in discharging his duties. The members of the Committee of Advisors are former SBI GM Ravindra Sapra and CA Abhijeet Deshmukh.
Notably, the RBI had also barred the cooperative bank from allowing customers to withdraw deposits and said that eligible depositors can claim funds of up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation, an RBI subsidiary. The move sparked panic, as depositors of New India Cooperative Bank were seen standing in queues outside the bank’s branch in Mumbai to withdraw their funds.