The Reserve Bank of India is planning to allow special withdrawal in personal and health emergencies to the depositors of New India Cooperative Bank facing problems. In addition to the Reserve Bank, the depositors will also have to prove that they need money for an emergency need. This information was given by a source of the Reserve Bank.
Two sources said that withdrawal of up to Rs 5,00,000 will be allowed in the event of special withdrawal, which is also the limit of deposit insurance. They do not want to express their identity because they are not authorized to interact with the media. Under the existing rules, the depositors are insured up to Rs 5,00,000 if the bank sinks and this amount should be paid to them in 90 days. In this connection, Reuters had sought a comment by emailing the Reserve Bank but did not get the reply.
New India Cooperative Bank has been facing losses for the last two financial years. According to the bank’s annual report, it had filed a loss of Rs 22.78 crore in FY 2024 and Rs 30.75 crore in FY 23. The bank had a deposit of Rs 24.36 billion by 31 March, 2024 and had disbursed a loan of Rs 11.75 billion. The Reserve Bank had prevented the bank from issuing new loans in view of supervisory concerns and cash last week and the withdrawal of deposits has been suspended for six months. The administrator of the bank has also been appointed in this order.
According to both sources, it is not clear that the operation of the bank will start again after six months. The Reserve Bank had earlier taken action against the management of some cooperative banks as steps were taken against the interests of the depositors earlier.
First Published – February 20, 2025 | 10:28 PM IST
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