RBI allows New India Co-operative Bank depositors to withdraw Rs 25000
Also eases norms for UCBs
By : Falaknaaz Syed
Update: 2025-02-24 19:20 GMT
Mumbai: The Reserve Bank of India (RBI) on Monday allowed depositors of troubled New India Cooperative Bank to withdraw upto ₹25,000 per depositor, with effect from February 27, 2025. With this relaxation more than 50 per cent of the total depositors will be able to withdraw their entire balances and the remaining depositors can draw upto ₹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for this withdrawal, however, aggregate amount that can be withdrawn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 ₹25,000 per depositor or the balance available in their
account whichever is lower,” said the central bank.
On February 13, 2025, the RBI had imposed all inclusive directions on
the bank, halting any withdrawals from savings, current, and other
accounts as a precautionary measure to protect depositors’ interests.
the bank, halting any withdrawals from savings, current, and other
accounts as a precautionary measure to protect depositors’ interests.
Subsequently, on February 14, 2025, the central bank superseded the
it's Board and appointed an Administrator along with a Committee of
Advisors (CoA) to oversee the situation and ensure the bank’s
stability. The central bank also reconstituted the Committee of
Advisors (CoA) to the Administrator effective, from February 25, 2025.
The CoA shall now consists of Ravindra Sapra, former general manager,
State Bank of India, Ravindra Tukaram Chavan, former deputy chief
general manager at Saraswat Co-operative Bank Ltd and Anand M Golas, a
chartered accountant.
Meanwhile, the central bank also revised certain norms for urban
co-operative banks (UCBs), with a view of providing them with greater
operational flexibility, while meeting regulatory objectives. UCBs can
now classify loans up to Rs 25 lakh or 0.4 per cent of Tier I capital,
whichever is higher, as small-value loans, subject to a ceiling of Rs
3 crore per borrower.
Prior to the amendments, UCBs could classify loans up to Rs 25 lakh or
0.2 per cent of Tier I capital as small-value loans, subject to a
ceiling of Rs one crore per borrower. The RBI has also increased the
aggregate exposure limit for residential mortgages to 25 per cent of
its total loans and advances.
Exposure of UCBs to the real estate sector, excluding housing loans,
is capped at 5 per cent, the RBI said. Additionally, the RBI has
revised the individual housing loan limits for different tiers of
UCBs. The new limits range from Rs 60 lakh to Rs 3 crore. The RBI has
also extended the glide path for provisioning requirements for
investment in security receipts by two years until 2027-28.
These revised norms are effective immediately, the RBI said.
it's Board and appointed an Administrator along with a Committee of
Advisors (CoA) to oversee the situation and ensure the bank’s
stability. The central bank also reconstituted the Committee of
Advisors (CoA) to the Administrator effective, from February 25, 2025.
The CoA shall now consists of Ravindra Sapra, former general manager,
State Bank of India, Ravindra Tukaram Chavan, former deputy chief
general manager at Saraswat Co-operative Bank Ltd and Anand M Golas, a
chartered accountant.
Meanwhile, the central bank also revised certain norms for urban
co-operative banks (UCBs), with a view of providing them with greater
operational flexibility, while meeting regulatory objectives. UCBs can
now classify loans up to Rs 25 lakh or 0.4 per cent of Tier I capital,
whichever is higher, as small-value loans, subject to a ceiling of Rs
3 crore per borrower.
Prior to the amendments, UCBs could classify loans up to Rs 25 lakh or
0.2 per cent of Tier I capital as small-value loans, subject to a
ceiling of Rs one crore per borrower. The RBI has also increased the
aggregate exposure limit for residential mortgages to 25 per cent of
its total loans and advances.
Exposure of UCBs to the real estate sector, excluding housing loans,
is capped at 5 per cent, the RBI said. Additionally, the RBI has
revised the individual housing loan limits for different tiers of
UCBs. The new limits range from Rs 60 lakh to Rs 3 crore. The RBI has
also extended the glide path for provisioning requirements for
investment in security receipts by two years until 2027-28.
These revised norms are effective immediately, the RBI said.