New India Co-op Bank depositors get relief as RBI allows Rs 25,000 withdrawal 

Withdrawals can be made through branches or ATMs, but the total amount a depositor can withdraw will be capped at Rs 25,000 or the balance available in their account, whichever is lower.

In Short

• RBI lifts some restrictions on New India Co-operative Bank
• Bank was under restrictions since February 13
• Over 50% depositors can now access full balances

The Reserve Bank of India (RBI) on Monday eased restrictions on New India Co-operative Bank Limited, allowing depositors to withdraw up to Rs 25,000 from their accounts starting February 27.

The bank had been under RBI’s All Inclusive Directions (AID) since February 13, which barred any withdrawals from savings, current, or other deposit accounts.

The central bank later superseded the bank’s Board, appointing an Administrator and a Committee of Advisors (CoA) as per its February 14 press release.

Following a review of the bank’s liquidity position with the administrator, the RBI has now permitted limited withdrawals.

“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 Rs 25,000 from their deposit accounts,” the RBI said.

Withdrawals can be made through branches or ATMs, but the total amount a depositor can withdraw will be capped at Rs 25,000 or the balance available in their account, whichever is lower.