 "RBI allows Rs 25,000 withdrawal for New India Cooperative Bank depositors")
In a partial relief to the depositors of fraud-hit New India Cooperative Bank, the Reserve Bank of India (RBI) has allowed withdrawal of ₹25,000 starting February 27.
“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 ₹25,000 from their deposit accounts,” RBI said.
The depositors may use the branch as well as the ATM channel of the bank for this withdrawal. However, the aggregate amount that can be withdrawn will be ₹25,000 per depositor or the balance available in their account whichever is lower, it was clarified.
RBI has also reconstituted the Committee of Advisors (CoA) to the Administrator effective, from February 25.
CoA consists of Ravindra Sapra, former general manager of State Bank of India, Ravindra Tukaram Chavan, former Deputy CGM, Saraswat Co-operative Bank Ltd and Shri Anand M Golas, Chartered Accountant.
There is no change in the Administrator. Shreekant, former chief general manager of State Bank of India.
“The Reserve Bank is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank,” the press release said.
On 13 February, RBI imposed all-inclusive direction on the lender, halting deposit withdrawals and barring extending fresh loans. The next day, the board was superseded and an administrator was appointed. The Deposit Insurance and Credit Guarantee Corporation (DICGC) has already started the process of claim settlement which will be completed by 14 May, 2025.
Following the RBI action, the Mumbai police registered a case against the New India Cooperative Bank’s General Manager and Head of Accounts along with his associates for allegedly embezzling ₹ 122 crore of funds. Later, the former CEO of the bank was also arrested by the Economic Offences Wing of Mumbai Police.