Days after imposing a number of restrictions on New India Co-operative Bank, the RBI on Monday (February 24, 2025) relaxed the circumstances and permitted clients to withdraw up to ₹25,000 from their deposit accounts with impact from February 27.
On February 13, the Reserve Bank had imposed All Inclusive Directions (AID) on the Mumbai-based cooperative financial institution, which included a ban on deposit withdrawals, amid supervisory issues.
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Later, the RBI outmoded the Board of Directors of New India Cooperative Bank for a interval of 12 months. It additionally appointed Shreekant, former Chief General Manager of State Bank of India (SBI), as Administrator to handle the affairs of the financial institution throughout this era.
It additionally appointed a ‘Committee of Advisors’ to help the Administrator.
In an announcement on Monday, the Reserve Bank mentioned that after reviewing the financial institution’s liquidity place in session with the Administrator, it has “decided to allow a deposit withdrawal of up to ₹25,000 per depositor, with effect from February 27, 2025”.
With the comfort, greater than 50% of the full depositors can be ready to withdraw their whole balances and the remaining depositors can draw up to ₹25,000 from their deposit accounts.
“The depositors may use the branch as well as ATM channel of the bank for this withdrawal, however, aggregate amount that can be withdrawn will be ₹25,000 per depositor or the balance available in their account whichever is lower,” RBI mentioned.
The financial institution has 28 branches, principally positioned within the Mumbai area.
Meanwhile, the RBI has additionally reconstituted the Committee of Advisors (CoA) to the Administrator (efficient February 25, 2025).
The CoA now consists of Ravindra Sapra, former General Manager, SBI; Ravindra Tukaram Chavan, former Deputy CGM, Saraswat Co-operative Bank; and Anand M Golas, a chartered accountant.
“The Reserve Bank is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank,” the central financial institution mentioned.
The restrictions got here into power from the shut of enterprise on February 13 and would stay in power for a interval of six months and are topic to evaluate.
RBI had mentioned that the instructions have been necessitated due to supervisory issues emanating from the current materials developments within the financial institution, and to defend the curiosity of depositors of the financial institution.
Further, eligible depositors could be entitled to obtain deposit insurance coverage declare quantity of their deposits up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Published – February 24, 2025 08:02 pm IST
