New India Co-operative Bank's depositors can withdraw up to Rs 25,000 from Feb 27, says RBI

The Reserve Bank of India has on February 24 permitted depositors of crisis-hit New India Co-operative Bank to withdraw up to Rs 25,000 with effect from February 27.

With this relaxation, more than 50% of the total depositors will be able to withdraw their entire balances. The depositors may use the branch as well as ATM channel of the bank for this withdrawal, the central bank said.

"The Reserve Bank, after reviewing the bank’s liquidity position in consultation with the Administrator, has decided to allow a deposit withdrawal of up to Rs 25,000 per depositor, with effect from February 27, 2025. With above relaxation more than 50 per cent 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 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may use the branch as well as ATM channel of the bank for this withdrawal, however, aggregate amount that can be withdrawn will be Rs 25,000 per depositor or the balance available in their account whichever is lower," said RBI in a statement.

Earlier this month, due to supervisory concerns, RBI had prohibited the Mumbai-based bank from issuing new loans and suspended deposit withdrawals, and followed it up by superseding the bank’s board for mismanagement.