New Delhi, Feb. 20 -- Another cooperative lender is now embroiled in an alleged fraud. Mumbai-based New India Cooperative Bank faces crippling curbs from RBI and its board has been dissolved, similar to what PMC Bank faced in 2019. Has anything changed since then? Mint explains.

On 13 February, RBI placed the lender under restrictions and directed the bank to not allow withdrawals from savings, current or any other deposit accounts. While directing depositors to bank officials and to India's banking deposit insurance provider on how to claim their insurance payments against deposits of up to Rs.5 lakh, RBI said the restrictions should not be seen as a cancellation of the bank's licence. A day later, uncertain over the future of their mon...