This is the third arrest in the case. The bank’s general manager Hitesh Mehta is accused of misappropriating a total of ₹122 crore in cash from the bank’s safe over a period of time.

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Bhoan had been called to record his statement on Thursday and Friday. After his role in the crime became apparent during the interrogation, he was placed under arrest late Friday night, said an EOW official.

The EOW had earlier arrested Hitesh Mehta and developer Dharmesh Paun in the case. The alleged misappropriation of funds came to light following an inspection by the Reserve Bank of India.

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“Considering the bank’s present liquidity position, the bank has been directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor,” the RBI wrote in its announcement.

What RBI said about New India Co-operative Bank

RBI banned withdrawals by deposits of the New India Co-operative bank but allowed it to set off loans against deposits, which is subject to certain conditions.

The bank can also incur expenditure on salaries of employees, rent, and electricity bills.

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The RBI also announced that the bank should not grant or renew any loans and advances, make any investment, and incur any liability, which includes acceptance of fresh deposits, without prior approval.

“These directions are necessitated due to supervisory concerns emanating from the recent material developments in the bank, and to protect the interest of depositors of the bank,” the central bank said.