Days after imposing several restrictions on New India Co-operative Bank, the Reserve Bank of India (RBI) has allowed deposit withdrawals of up to 25,000 rupees per depositor, effective from 27th February 2025.
In its press release, the RBI stated that this relaxation will allow more than 50 per cent of total depositors to withdraw their entire balances, while the remaining depositors can withdraw up to 25,000 rupees from their accounts. The RBI further clarified that depositors may use both the branch and ATM channels of the bank for this withdrawal, with the aggregate amount limited to 25,000 rupees per depositor or the available balance in their account, whichever is lower.
Additionally, the RBI has reconstituted the advisory committee to the administrator, effective today. The committee now consists of Ravindra Sapra, former general manager, of State Bank of India; Ravindra Tukaram Chavan, former deputy chief general manager, of Saraswat Co-operative Bank Ltd; and Anand M Golas, a chartered accountant. The release also said that the Reserve Bank is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank.
On 13th February, RBI imposed All Inclusive Directions (AID) on New India Co-operative Bank Limited, Mumbai and the bank was directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor.
