Mumbai Police’s Economic Offense Wing (EOW) has began an investigation on Saturday, February 15, into the alleged 'irregularities' at New India Cooperative Bank. The bank representative has complained about this to EOW, following which, his statement was recorded. The EOW is trying to understand what went wrong and where the alleged discrepancies occurred. Further legal action will be taken after the statement is recorded.
Meanwhile, the Reserve Bank of India (RBI) on Friday suspended New India Cooperative Bank transactions.This comes a day after the central bank imposed several restrictions on the lender.
While the RBI has cited “poor governance standards observed in the bank’’, reports claimed that the action was in response to alleged misappropriation of funds. A Moneycontrol report said the chief compliance officer of the co-operative bank may have filed a complaint with the Economic Offences Wing (EOW), alleging misappropriation of funds by some of the bank staff.
Following the RBI restrictions, many of the bank’s customers gathered at its branches on Friday to withdraw money from their accounts. The banking regulator has barred the bank from issuing new loans and suspended deposit withdrawals for six months. The bank has 28 branches, mostly located in the Mumbai region.