RBI permits withdrawals up to Rs 25,000 per depositor from New India Co-operative Bank

The Reserve Bank of India (RBI) has permitted deposit withdrawals of up to 25,000 rupees per depositor, effective from February 27, 2025, following the imposition of numerous restrictions on New India Co-operative Bank.

The Reserve Bank of India (RBI) announced in its press release that this relaxation will enable over 50% of the total depositors to withdraw their entire balances, while the remaining depositors will be able to withdraw up to 25,000 rupees from their accounts.

The RBI further clarified that depositors may utilize both the branch and ATM channels of the bank to make this withdrawal, with the aggregate amount being restricted to 25,000 rupees per depositor or the available balance in their account, whichever is lesser. Furthermore, the advisory committee has been reconstituted by the RBI according to the administrator, with effect from today.

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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.

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