What restrictions has the Reserve Bank of India imposed on New India Cooperative Bank and why?

The Reserve Bank of India has imposed strict restrictions on Mumbai-based New India Cooperative Bank due to liquidity concerns. The bank has been barred from disbursing funds, which has left depositors unable to withdraw their money, causing commotion outside the bank branches. This intervention by India's central bank highlights the fragility of smaller financial institutions in emerging markets like India. The situation has created significant turbulence in India's banking sector as customers find themselves cut off from accessing their savings, demonstrating the vulnerabilities that exist within the country's cooperative banking system.