Case registered against former manager of New India Co-operative Bank: Hitesh Mehta accused of embezzling ₹122 crores, ban on deposits and withdrawals in the bank
In the New India Cooperative Bank case, Mumbai Police has registered a case against a person named Hitesh Mehta. Hitesh Mehta has been the general manager and head of the accounts department of New India Cooperative Bank. It is alleged that Hitesh Mehta, along with his associate, embezzled Rs 122 crore from the Prabhadevi and Goregaon branches of the bank.
The case has been transferred to the Economic Offenses Wing (EOW) of Mumbai Police. A case has been registered against the accused under section 316 (5) 61 (2) Code 2023. Earlier on Friday, RBI removed the board of New India Cooperative Bank for 12 months.
Deposit and withdrawal banned due to non-compliance of rules
RBI on Thursday (January 13) banned deposits and withdrawals in the bank due to non-compliance of rules. Now the bank will not be able to issue new loans either. Account holders are confused about when they will get their money.
RBI’s action in view of the current cash situation
The Reserve Bank said that in view of the current cash situation of the bank, it has been instructed not to allow withdrawal of any amount from the depositor’s savings bank or current accounts or any other account. However, spending on some essential things like salary, rent and electricity bills is allowed.
RBI’s ban will remain effective for six months
RBI will continue to monitor the situation of the bank and modify these instructions to ensure the protection of depositors’ interests. These restrictions will be effective for six months from February 13, 2025.
Depositors will be able to claim up to Rs 5 lakh
RBI said that eligible depositors will be entitled to receive deposit insurance claim amount up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation. At the end of March 2024, the cooperative bank had deposits of Rs 2436 crore.