Mon Feb 24 14:32:43 UTC 2025: **RBI Eases Restrictions on New India Co-operative Bank, Allows Withdrawals up to ₹25,000**
Mumbai, February 24, 2025 – The Reserve Bank of India (RBI) announced a relaxation of restrictions imposed on the New India Co-operative Bank, allowing depositors to withdraw up to ₹25,000 from their accounts starting February 27. The restrictions, including a ban on withdrawals, were implemented on February 13 due to supervisory concerns.
The RBI’s decision follows a review of the bank’s liquidity position in consultation with the newly appointed administrator, Shreekant (former Chief General Manager of State Bank of India). This relaxation will enable over 50% of depositors to withdraw their full balances, while others can access up to ₹25,000. Withdrawals can be made at bank branches and ATMs.
The RBI also superseded the bank’s Board of Directors for 12 months and formed a Committee of Advisors to assist the administrator. The committee’s membership has been reconstituted, effective February 25.
While the initial restrictions, which included a six-month ban on withdrawals subject to review, were implemented to protect depositors’ interests, the RBI stated it will continue to monitor the situation and take necessary steps. Depositors are also eligible for deposit insurance up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The bank has 28 branches, primarily located in the Mumbai region. The General Manager of the bank was previously arrested for alleged misappropriation of ₹122 crore.
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