Why did the Reserve Bank of India intervene with New India Cooperative Bank?

The Reserve Bank of India intervened with New India Cooperative Bank citing 'material developments' as the reason for their action. The central bank's primary aims were to protect depositor interests and ensure financial stability amid liquidity concerns at the bank. This intervention was implemented as a protective measure to safeguard customers' savings, though it triggered immediate panic among account holders. Following the announcement, customers rushed to bank branches fearing their savings were at risk, with many expressing frustration over the lack of prior warning about the situation.