The National Bank for Agriculture and Rural Development (NABARD) has launched an audit of the Andaman & Nicobar State Cooperative Bank (ANSCB), with close monitoring by the Enforcement Directorate (ED) and the Reserve Bank of India (RBI). According to officials, the audit is currently ongoing, while the bank continues its day-to-day operations across the islands.
A senior bank official confirmed that all 41 branches across 15 islands are functioning smoothly, adding that panic withdrawals, which had surged earlier, have now been fully controlled. The panic initially erupted in May 2025 after news of a scam linked to the bank broke, causing public anxiety. The official noted that measures taken by the bank and authorities have successfully restored confidence among depositors.
“The situation is under control, and normal banking operations have resumed across all branches,” the senior bank official told The Wave Andaman. “Panic withdrawals have been completely stopped, and we are committed to maintaining transparency and stability in all our operations.”
In addition to the ongoing audit, the senior bank official mentioned that nine auctions are scheduled to take place in the coming months as part of the bank’s asset management and recovery process. These actions aim to strengthen financial stability and recover non-performing assets in a structured manner.
The official also highlighted that all cases and notices related to the bank are being reviewed by the Chief Secretary and the Finance Secretary of the Andaman & Nicobar Administration, ensuring administrative oversight and compliance with regulatory requirements.
The ANSCB plays a crucial role in the region’s financial ecosystem, serving as a cooperative banking institution that provides banking services and credit facilities to individuals, farmers, and small businesses across the islands. Its 41 branches cater to both urban and remote island communities, making operational stability essential for the local economy.
The ongoing NABARD audit, monitored by the ED and RBI, is expected to provide a comprehensive assessment of the bank’s financial health, internal controls, and compliance with statutory regulations. Officials emphasized that such audits are routine measures to ensure accountability, safeguard depositor interests, and strengthen governance practices in cooperative banks.
The senior bank official reassured the public that the bank remains committed to its core mission of supporting local livelihoods and facilitating economic development, while fully cooperating with authorities to address all audit observations.
With the audit process underway and panic withdrawals stabilized, ANSCB is focusing on rebuilding public trust and ensuring transparent banking operations across the Andaman and Nicobar Islands.
