The Reserve Bank of India on Monday said it would allow depositors of troubled New India Co-operative Bank to withdraw up to Rs 25,000 from their accounts.
“After reviewing the bank’s liquidity position in consultation with the administrator, the RBI has decided to allow deposit withdrawal of up to Rs 25,000 per depositor, with effect from February 27, 2025. With above relaxation, more than 50% of total depositors will be able to withdraw their entire balances and the remaining can draw up to Rs 25,000 from their deposit accounts,” the regulator said in a press note.
Depositors can may use the branch as well as ATM channels for withdrawal. However, the aggregate amount that can be withdrawn will be Rs 25,000 per depositor or the balance available in their account, whichever is lower, the RBI said.
The central bank on February 13 barred the lender from issuing new loans, suspended deposit withdrawals for six months and appointed an administrator, citing supervisory concerns and the lender’s liquidity position.
The co-operative bank had outstanding deposits of Rs 2,436 crore as of March 31, 2024, and advances of Rs 1,175 crore.