Guwahati: RBI Freezes Lakhtokia Co-op Bank for 6 Months; Depositors Left With Just Rs 35,000

In a major blow to hundreds of depositors, the Reserve Bank of India (RBI) has ordered a complete freeze on all banking transactions of the Industrial Co-operative Bank in Guwahati’s Lakhtokia area for six months, which came into effect from July 4. 

The decision comes after the apex bank reportedly uncovered financial irregularities in the bank’s functioning.

The RBI’s directive means that the bank cannot carry out any deposits, loans, or other financial services until further notice. This sudden move has caused panic among the bank’s customers, many of whom had entrusted their life savings with the institution.

Soon after the directive by RBI, the situation turned chaotic as customers gathered at the bank in Lakhtokia, demanding answers and seeking to withdraw their money, however the helpless bank staff could only do little to calm them.

As per the RBI’s restriction, depositors can only withdraw a maximum of Rs 35,000 during the six-month freeze, regardless of the total amount they have in their accounts. This has particularly alarmed customers who had kept lakhs in fixed deposits or savings accounts for emergencies or upcoming needs.

According to initial findings, the co-operative bank has defaulted on loans amounting to nearly Rs 77 crore, plunging it deep into a financial mess.

Many depositors have now begun questioning how such a large financial hole was allowed to grow unnoticed, and why no warning was given to customers before this drastic step.

While the RBI has said the restrictions are meant to protect depositors and give the bank time to recover, there is little comfort for those who are now left in limbo. For people who depend on the bank for their day-to-day transactions, the directive has disrupted not just their finances, but also their peace of mind.

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