RBI has ensured that it will continue to take necessary steps to protect depositors' interests. (Photo: PTI)-

RBI withdrawal relief for New India Co-op Bank depositors. Check details here

This announcement comes just over a week after the central bank prohibited the bank from issuing new loans, dissolved its board and took control owing to 'supervisory concerns.'

by · India Today

In Short

  • RBI prohibited New India Cooperative Bank from issuing new loans and dissolved its board
  • It has permitted New India Cooperative Bank depositors to withdraw up to Rs 25,000
  • The withdrawals have been permitted from February 27 onwards

The Reserve Bank of India (RBI) has permitted depositors of New India Cooperative Bank to withdraw up to Rs 25,000 from their accounts.

This decision comes just over a week after the central bank prohibited the bank from issuing new loans, dissolved its board and took control owing to ‘supervisory concerns.’

“The Reserve Bank, after reviewing the bank’s liquidity position in consultation with the Administrator, has decided to allow a deposit withdrawal of upto Rs 25,000 (Rupees Twenty Five Thousand only) per depositor, with effect from February 27, 2025,” stated RBI in a press release.

Now, with the RBI’s latest move, over 50% of the depositors will be able to withdraw the full amount while others can draw a maximum of Rs 25,000 from their 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may use the branch as well as ATM channel of the bank for this withdrawal, however, aggregate amount that can be withdrawn will be Rs 25,000 per depositor or the balance available in their account whichever is lower,” RBI added.

WHAT IT MEANS FOR DEPOSITORS?

RBI’s decision to allow depositors to withdraw up to Rs 25,000 offers a major relief to them following earlier restrictions.

By allowing control access to funds, the central bank’s move has eased financial stress among depositors, who were unable to access their funds owing to restrictions.

Also, the withdrawal limit, though small, offers some financial relief for depositors to meet their essential expenses.

Moreover, RBI has ensured that it is keeping a close watch over the developments and will continue to take necessary steps to protect depositors’ interests.