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This relaxation comes nearly two weeks after the central bank imposed stringent restrictions on the bank, including a complete freeze on withdrawals.
The RBI had placed All-Inclusive Directions (AID) on the bank on February 13, preventing any withdrawals due to concerns over its liquidity and financial stability.
Following a review of the bank’s cash position, the central bank has now decided to provide partial relief to depositors, stating that more than 50% of depositors will be able to fully withdraw their balances.
The remaining account holders can withdraw up to ₹25,000, or their available balance if it is lower. Withdrawals can be made via bank branches and ATMs.
Fraud Investigation and Governance Changes
The RBI had earlier superseded the bank’s board and appointed an Administrator and a Committee of Advisors (CoA) to oversee its operations. The CoA has now been reconstituted with new members, including former senior officials from State Bank of India and Saraswat Co-operative Bank. The RBI has reiterated that it is monitoring the situation closely.
Also read: RBI weighs some relief for New India Co-operative Bank depositors: Report
Meanwhile, an ongoing investigation into a ₹122 crore alleged fraud involving senior bank officials has added to depositors’ anxiety.
The Mumbai Police’s Economic Offences Wing (EOW) is probing allegations that the bank’s former General Manager and Head of Accounts, Hitesh Mehta, along with ex-CEO Abhimanyu Bone, embezzled funds over time. Both have been remanded in police custody until February 28.
The RBI’s restrictions had sparked protests, with customers gathering outside branches demanding access to their money. While the latest withdrawal relief offers some respite, uncertainty remains over the bank’s long-term future.
