The Reserve Bank of India (RBI) prohibited New India Co-Operative Bank's commercial activities a few days ago. As a result, the bank cannot take deposits or provide new loans. This money was not available for withdrawal. However, the RBI has finally provided customers with some relief. In a recent statement issued by the bank, it said that account holders are permitted to withdraw up to Rs. 25,000 by the RBI.
A significant issue emerged for the bank's account holders after the RBI prohibited the operations of the New India Co-operative Bank. Additionally, the RBI forbade the withdrawal of depositor funds, which have now been partially lifted.
The RBI recently constituted a committee of advisors and administrators for the New India Cooperative Bank. After assessing the bank's financial situation, the RBI has chosen to offer account holders relief. Starting on February 27, 2025, each account user will be able to take out up to Rs 25,000.
More than half of all depositors will be able to withdraw their full sums as a result of this modification. The depositors can make this withdrawal through the bank's ATM or branch.
The Committee of Advisors (CoA) to the Administrator was reorganised by the RBI on February 24 with effect from February 25, 2025. i) Ravindra Sapra, former General Manager of State Bank of India, will now be a member of the CoA. ii) Former Saraswat Co-operative Bank Ltd. Deputy CGM Ravindra Tukaram Chavan iii) Chartered accountant Anand M. Golas.
The RBI in its statement further mentioned, “There is no change in the Administrator (Shreekant). The Reserve Bank is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank.”