Business

RBI Dissolves Board of New India Co-operative Bank; Customers Face Uncertainty

Published

1 year ago

February 16, 2025

The Reserve Bank of India (RBI) has taken the step of superseding the Board of Directors of New India Co-operative Bank for a period of 12 months, citing inadequate governance practices. This action follows closely on the heels of restrictions imposed on another Mumbai-based co-operative bank.

In a statement, the RBI declared, “In exercise of the powers conferred under Section 36 AAA in conjunction with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies), the Reserve Bank has superseded the Board of Directors of New India Cooperative Bank Ltd, Mumbai, for a period of 12 months.”

Additionally, the RBI has appointed Shreekant, a former chief general manager of the State Bank of India (SBI), to oversee the bank’s operations. He will be supported by an advisory committee that includes Ravindra Sapra, a former general manager at SBI, and chartered accountant Abhijeet Deshmukh.

The RBI had imposed restrictions on the bank, including a six-month freeze on withdrawals due to liquidity issues. As a result, depositors are unable to access their savings, current, or other accounts; however, the bank is permitted to offset loans against deposits and to cover essential expenses such as staff salaries, rent, and utility bills.

The central bank has indicated that the bank is not allowed to grant or renew loans, make new investments, or accept fresh deposits without prior approval. It has reassured depositors that those eligible can claim up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

This situation has understandably caused considerable distress among depositors, many of whom depend on their accounts for daily financial obligations. Panic ensued as customers rushed to bank branches, anxious about their savings, bill payments, and loan EMIs.

The RBI maintained that eligible depositors could receive a deposit insurance claim amounting to ₹5 lakh for their accounts, contingent upon the submission of their willingness and subsequent verification under the provisions of the DICGC Act, 1961.

However, the RBI emphasized that the issuance of the Directions should not be interpreted as a cancellation of the bank’s banking license. “The bank will continue to operate its banking business, subject to the restrictions outlined in the Directions, until its financial situation improves,” the central bank noted.

Business

Opendoor Shuts Down India Operations, 250 Employees Affected

Published

1 day ago

June 11, 2026

Namma Kudla

Business: US-based real estate technology company Opendoor has decided to close its operations in India. The move will impact nearly 250 employees.

CEO Kaz Nejatian said the company is bringing operational roles closer to its customers in the United States. He explained that most of Opendoor’s customers are based in America.

The company said the decision is not related to the performance of its India team. Nejatian praised the employees for their hard work and contributions.

Affected workers will receive severance pay, job placement support, and other assistance. A small number of employees will stay temporarily to help with the transition.

Opendoor said it will continue focusing on simplifying operations and improving efficiency with new technology and AI.

Business

Domestic LPG Cylinder Price Increased by Rs 29

Published

5 days ago

June 7, 2026

Namma Kudla

New Delhi: The price of domestic LPG cooking gas cylinders has been increased by Rs 29 across India. This is the second price hike in the last three months.

The increase comes as global energy prices continue to rise due to the ongoing conflict in the Middle East.

After the revision, a domestic LPG cylinder now costs Rs 942 in Delhi, Rs 941.40 in Mumbai, Rs 968 in Kolkata, and Rs 957.50 in Chennai. In Bengaluru, the new price is Rs 944.50 per cylinder.

The government said the cost of supplying LPG has increased significantly. However, subsidies under the Pradhan Mantri Ujjwala Yojana continue to help over 10 crore beneficiaries.

Petrol, diesel, and CNG prices have also increased in recent weeks as global fuel markets remain volatile.

Business

Honda Begins Delivery of 2026 City Hybrid

Published

1 week ago

June 3, 2026

Namma Kudla

Business: Honda Cars India has started delivering the new 2026 Honda City Hybrid to customers. The first car was handed over at a dealership in Bengaluru.

Honda President and CEO Takashi Nakajima attended the special delivery event. Other senior company officials were also present.

The first customer received a Crystal Black Pearl Honda City Hybrid. The car was delivered with a symbolic key and a gift hamper.

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The updated City comes with new features such as ventilated front seats and a 360-degree camera. It also offers wireless Apple CarPlay, Android Auto, and a sunroof.

The sedan is available with petrol and strong-hybrid powertrain options. Honda claims the hybrid version delivers a mileage of 27.26 kmpl.

The Honda City competes with the Volkswagen Virtus, Skoda Slavia, and Hyundai Verna in India.