NICB Depositors' Foundation Meets RBI-Appointed Advisors, Senior Officials & Police; Seeks Roadmap For Revival Or Merger

Mumbai: In a concerted push for relief and clarity in the wake of the ongoing crisis at the New India Co-operative Bank Ltd (NICB), the NICB Depositors' Foundation met RBI-appointed advisors, senior officials from the RBI and local police on Friday and pressed for a concrete roadmap for their bank’s revival or merger and protection for depositors.

About The Foundation

The Foundation, formed by aggrieved depositors of NICB, is demanding urgent measures to restore depositor confidence and alleviate the financial strain faced by thousands of account holders, many of whom have been unable to access more than Rs 25,000 of their own funds since the RBI imposed restrictions on February 13, 2025.

Foundation president TN Raghunatha said Friday’s efforts were “fruitful and forward-moving.” The delegation first met RBI-appointed advisors Ravindra Chavan and Ravindra Sapra. “The advisors were positive about the prospects of reviving the bank. They confirmed that multiple options, including a potential merger, were being explored, though specifics could not be shared at this stage,” said Raghunatha.

The advisors assured the delegation that their concerns and written representation would be forwarded to the RBI along with their own recommendations. The Foundation also made a strong pitch for raising the withdrawal limit from ₹25,000 to ₹1.5 lakh per account holder, citing the severe hardship being faced by depositors, especially senior citizens and co-operative housing societies.

Later, the delegation met three assistant GMs of the RBI’s supervision department, Sabhya Sachi, Gulshan Verma, and Satyan Pande. “The RBI officials were receptive and assured us that they would take up our concerns with the higher authorities. They acknowledged the need for an official update from the RBI regarding the bank’s current status,” said Rajani Pitale, VP of the Foundation.

The RBI AGMs reportedly suggested that the Foundation also send a formal letter to the Department of Regulation at RBI regarding the revival or merger of NICB. They also noted that they would consider recommending a fresh circular offering clarity on withdrawal policies and the bank’s status.

In line with advice from RBI officials, the Foundation also submitted a copy of their representation to the Cuffe Parade Police Station, adding to the chain of formal documentation aimed at triggering action.

A formal letter addressed to the NICB Administrator was also shared by the Foundation. In it, they raised nine specific concerns, including timelines for the bank’s revival, status of any potential merger discussions, assurance on FD principal amounts beyond Rs 5 lakh, Updates on forensic and special audits by RBI, and progress on property attachments and recovery of funds by the Economic Offences Wing.

“There is a disturbing ambiguity around the bank’s actual financial health, pending audits, and prospects for recovery. The silence is only worsening the anxiety of depositors who have their life savings trapped,” said Vivek Gaonkar, Foundation secretary.