The Impressive TimesMumbai : Days after imposing several restrictions on New India Co-operative Bank Limited, the Reserve Bank of India (RBI) has permitted depositors to withdraw up to ₹25,000 from their accounts. The relaxation, effective from February 27, 2025, aims to provide financial relief to account holders affected by the bank’s recent restrictions.
In a press release, the RBI stated that this measure would enable over 50% of the bank’s total depositors to withdraw their entire balances. For the remaining depositors whose account balances exceed ₹25,000, withdrawals will be limited to this amount. The RBI clarified that withdrawals can be made through both branch services and ATMs, with the maximum limit capped at ₹25,000 per depositor or the available account balance, whichever is lower.
The central bank also announced the reconstitution of the advisory committee assisting the bank’s administrator. Effective immediately, the committee includes three seasoned professionals: 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. This reconstitution aims to strengthen the bank’s governance and facilitate its financial recovery.
The RBI reassured depositors that it is closely monitoring the situation and will continue to take appropriate measures in their best interests. The regulatory body emphasized its commitment to safeguarding the stability of the financial system and protecting depositors’ funds.
The recent developments follow the RBI’s imposition of All Inclusive Directions (AID) on New India Co-operative Bank Limited on February 13, 2025. Under these restrictions, the bank was prohibited from allowing any withdrawals from savings, current, or other deposit accounts. The restrictions were part of the central bank’s supervisory measures to address financial irregularities and ensure the institution’s compliance with regulatory norms.
With the partial relaxation of withdrawal limits, depositors now have some access to their funds, easing financial hardships caused by the initial restrictions. However, the RBI has not yet indicated when the remaining limitations might be lifted. The situation remains dynamic, and further updates are expected as the bank works towards restoring normal operations.
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