The Deposit Insurance and Credit Guarantee Corporation (DICGC) has extended the timeline for making payments to eligible depositors of New India Co-operative Bank Limited (NICB), Mumbai, to August 12, 2025, under Section 18A of the DICGC Act, 1961.
As per the original press release issued on February 14, 2024, depositors were required to submit their claims by March 30, 2025, with disbursements scheduled to begin from May 14, 2025.
However, in a fresh notification dated May 13, 2025, the payment deadline has been extended by 90 days, giving the bank and DICGC more time to complete the formalities and ensure smoother processing.
As per estimates, there are around 1.25 lakh depositors in the bank, and nearly 90% of them are likely to receive their full insured amount of Rs 5 lakh from DICGC. Efforts are reportedly underway to secure relief for the remaining 10% of depositors whose balances exceed the insured limit.
Meanwhile, in a significant development on the criminal investigation front, the Mumbai Police’s Economic Offences Wing (EOW) has filed a 12,600-page chargesheet in the Rs 122-crore fraud case involving the bank.
Former chairman Hiten Bhanu and his wife Gauri Bhanu, both key accused in the scam, have been declared proclaimed offenders after fleeing the country. The charges have been filed under Section 335 of the Bharatiya Nagarik Suraksha Sanhita, which allows evidence to be recorded in the absence of the accused.
Despite an intensive manhunt, the EOW has been unable to trace the absconding couple. Investigators have recorded statements from 45 witnesses and attached properties worth Rs 167 crore linked to the accused, believed to be part of the proceeds of crime. The scam involved siphoning off Rs 122 crore from the bank’s Prabhadevi and Goregaon branches, deepening the financial crisis faced by the institution.
The combined developments reflect the dual nature of the ongoing efforts, providing relief to depositors through DICGC while simultaneously pursuing justice through legal action against those responsible for the bank’s collapse.
