New India Cooperative Bank Depositors Allowed To Withdraw Rs25,000 from 27th February
Moneylife Digital Team 24 February 2025
Reserve Bank of India (RBI) has allowed depositors of New India Cooperative Bank Ltd to withdraw Rs25,000 per depositor from 27 February 2025. Earlier this month, RBI has imposed all inclusive directions on New India Cooperative Bank, 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.
 
In a release, RBI says, "...after reviewing the Bank's liquidity position in consultation with the administrator, has decided to allow a deposit withdrawal of upto Rs25,000 per depositor, with effect from 27 February 2025. With the above relaxation, more than 50% of the total depositors will be able to withdraw their entire balances and the remaining depositors can draw up to Rs25,000 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may use the branch as well as ATM channel of the Bank for this withdrawal, however, aggregate amount that can be withdrawn will be Rs25,000 per depositor or the balance available in their account whichever is lower," RBI says.
 
On 13 February 2025, citing supervisory concerns and the lender's liquidity position, RBI imposed operational restrictions on the Mumbai-based multi-state scheduled bank. RBI also superseded the board of directors of New India Cooperative Bank for the next 12 months. It also appointed Shreekant, former chief general manager (CGM) of the State Bank of India (SBI) as administrator to manage the affairs of the bank during this period. Further, to assist the administrator, RBI appointed a committee of advisers which includes Ravindra Sapra (former GM of SBI) and Abhijeet Deshmukh (chartered accountant-CA) as members. 
 
To safeguard Bank's depositors, RBI has assured that eligible depositors will receive deposit insurance claims of up to Rs5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961, subject to verification. For more details, depositors are encouraged to visit the DICGC website or contact the Bank. (Read: New India Cooperative Bank: RBI Restricts Loans, Withdrawals for 6 Months, Appoints Administrator After Dismissing Board)
 
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