What restrictions has the Reserve Bank of India imposed on the New India Cooperative Bank and how are depositors affected?

The Reserve Bank of India has imposed strict restrictions on the 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 bank branches as worried customers seek access to their savings. This regulatory action highlights the fragility of smaller financial institutions in emerging markets like India. The situation underscores the challenges faced by depositors when banking institutions face liquidity issues, leaving them in financial limbo until the restrictions are lifted or alternative arrangements are made.