Depositors gathered outside the branch Veershaiva Co-operative Bank in suburban Andheri in north Mumbai.
The bank collapsed due to various reasons, including active and non-performing overtrading, the sources said.
People have asked the bank your money, but bank officials said return that the accounts were frozen.
One client, Nigam Pandya, who has a savings account at the bank, said a statement RBI is bonded to the entry of banks, because it can not perform transactions.
"I hope not to lose all my hard earned money," he said.
Customers are also collected in class on Thursday, after consultation with RBI, the appointment of the collection administrator.
The bank, headquartered in Kolhapur, has several branches in western Maharashtra. (INA)