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Informist, Monday, Feb. 24, 2025

 

--RBI allows customers of New India Co-op Bank to withdraw up to INR 25,000

--CONTEXT: RBI barred deposit withdrawals from New India Co-op Bk on Feb 13 

--RBI: Closely monitoring developments at New India Co-operative Bank 

--RBI: To take necessary steps in interest of New India Co-op Bk depositors  

 

MUMBAI – The Reserve Bank of India Monday allowed depositors of New India Co-operative Bank to withdraw up to INR 25,000 per depositor with effect from Thursday. With the relaxation, more than 50% of the total depositors of the co-operative bank will be able to withdraw their entire balances and the remaining depositors can draw up to INR 25,000 from their accounts, the RBI said in a release.
 

The RBI had on Feb. 13 barred the co-operative bank from giving fresh loans and accepting deposits on account of supervisory concerns emanating from the recent developments in the bank. It had also directed the bank not to allow the withdrawal of any amount from the savings bank or current accounts but can set off loans against deposits.

 

A day later, the RBI superseded the bank's board of directors for a year and appointed Shreekant, a former chief general manager of SBI, as the administrator to manage affairs of the bank. The RBI had also formed a committee of advisors, with former general manager of SBI Ravindra Sapra and chartered accountant Abhijeet Deshmukh as members, to assist the administrator. 

 

The RBI Monday said it is closely monitoring developments in the bank and will continue to take necessary steps in the interest of the depositors. Customers can use either the branch or automated teller machines to withdraw their deposits within the specified limit, the RBI said. 

 

The regulator also reconstituted a committee of advisors, effective from Tuesday. The committee will consist of Sapra, Saraswat Co-operative Bank's former deputy chief general manager Ravindra Chavan and chartered accountant Anand M Golas. Shreekant will remain the administrator of the bank, the RBI said. End

 

Reported by Christina Titus 

Edited by Saji George Titus

 

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