New India Co-operative Bank Ltd., Mumbai has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934. But Why? Let’s understand.
New India Cooperative Bank Limited (also known as NICB) is a Mumbai-based cooperative bank, incorporated on 6 December 1967. Since February 2025, the bank was under scrutiny by the Reserve Bank of India over an alleged ₹122 crore scam.
On 14 February 2025, the Reserve Bank of India appointed Shreekant, former Chief General Manager of State Bank of India, as the Administrator of the bank. A Committee of Advisors, including Ravindra Sapra (former General Manager, SBI) and a chartered accountant, was also appointed to assist in managing the bank.
In February 2025, the Economic Offences Wing of the Mumbai Police arrested Hitesh Mehta, former general manager and head of accounts at New India Cooperative Bank, for allegedly misappropriating ₹122 crore from the bank’s cash reserves. Dharmesh Paun, a real estate developer, was also arrested for allegedly facilitating the diversion of funds.
An inspection by the Reserve Bank of India on 12 February 2025, identified discrepancies in the bank’s cash records, revealing ₹112 crore missing from the Prabhadevi branch safe and ₹10 crore from the Goregaon branch safe. Following this, the RBI imposed withdrawal restrictions on the bank. It has been allege that the misappropriation took place over six years, between 2019 and 2025.
The Reserve Bank of India also superseded the board of New India Cooperative Bank for 12 months following financial and operational restrictions related to irregular lending practices.
The Economic Offences Wing of Mumbai Police arrested former New India Cooperative Bank CEO Abhimanyu Bhoan on 20 February 2025 in connection with the ₹122 crore scam, making it the third arrest in the case.
As of 18 March 2025, a total of seven arrests have been made in connection with the case.
In March 2025, the Economic Offences Wing seized properties worth ₹28 crore belonging to Hiren Bhanu, former Chairman of the bank, son of co-founder Ranjit Bhanu and an alleged mastermind of the ₹122 crore scam, under Section 106 of BNS. Hiren Bhanu and his wife, Gauri Bhanu, former Vice Chairperson of the bank, have fled abroad, and a Blue Corner notice has been issued for their extradition.
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