RBI Allows Withdrawal for New India Cooperative Bank Depositors
ECONOMY & POLICY

RBI Allows Withdrawal for New India Cooperative Bank Depositors

In a partial relief to depositors of the fraud-hit New India Cooperative Bank, the Reserve Bank of India (RBI) has permitted withdrawals of up to Rs 25,000 starting February 27. This relaxation will enable more than 50% of the bank’s depositors to withdraw their entire balances, while the remaining depositors can access up to Rs 25,000 from their accounts. The withdrawals can be made through the bank’s branches and ATMs, subject to an upper limit of Rs 25,000 per depositor or their available account balance, whichever is lower.

Additionally, the RBI has reconstituted the Committee of Advisors (CoA) to the Administrator, effective February 25. The newly appointed CoA members include Ravindra Sapra, former General Manager of State Bank of India; Ravindra Tukaram Chavan, former Deputy CGM of Saraswat Co-operative Bank Ltd; and Anand M. Golas, Chartered Accountant. However, there is no change in the Administrator, with Shreekant, former Chief General Manager of State Bank of India, continuing in the role.

The RBI stated that it is closely monitoring the situation and will take necessary steps in the interest of depositors. On February 13, the central bank imposed strict restrictions on New India Cooperative Bank, suspending deposit withdrawals and halting fresh loan disbursements. The following day, the bank’s board was superseded, and an administrator was appointed. Meanwhile, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has begun processing claim settlements, expected to be completed by May 14, 2025.

In the wake of RBI’s actions, Mumbai Police registered a case against the bank’s General Manager, Head of Accounts, and their associates for allegedly embezzling ?122 crore. Subsequently, the Economic Offences Wing (EOW) also arrested the former CEO of the bank.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

In a partial relief to depositors of the fraud-hit New India Cooperative Bank, the Reserve Bank of India (RBI) has permitted withdrawals of up to Rs 25,000 starting February 27. This relaxation will enable more than 50% of the bank’s depositors to withdraw their entire balances, while the remaining depositors can access up to Rs 25,000 from their accounts. The withdrawals can be made through the bank’s branches and ATMs, subject to an upper limit of Rs 25,000 per depositor or their available account balance, whichever is lower. Additionally, the RBI has reconstituted the Committee of Advisors (CoA) to the Administrator, effective February 25. The newly appointed CoA members include Ravindra Sapra, former General Manager of State Bank of India; Ravindra Tukaram Chavan, former Deputy CGM of Saraswat Co-operative Bank Ltd; and Anand M. Golas, Chartered Accountant. However, there is no change in the Administrator, with Shreekant, former Chief General Manager of State Bank of India, continuing in the role. The RBI stated that it is closely monitoring the situation and will take necessary steps in the interest of depositors. On February 13, the central bank imposed strict restrictions on New India Cooperative Bank, suspending deposit withdrawals and halting fresh loan disbursements. The following day, the bank’s board was superseded, and an administrator was appointed. Meanwhile, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has begun processing claim settlements, expected to be completed by May 14, 2025. In the wake of RBI’s actions, Mumbai Police registered a case against the bank’s General Manager, Head of Accounts, and their associates for allegedly embezzling ?122 crore. Subsequently, the Economic Offences Wing (EOW) also arrested the former CEO of the bank.

Next Story
Infrastructure Transport

Indian Railways Marks New Milestone with 4.5 km Long ‘Rudrastra’ Trial

Indian Railways has successfully conducted the trial run of Asia’s longest freight train, named ‘Rudrastra’, achieving a new milestone in cargo transportation, as per news reports. The 4.5 km-long train began its trial from Ganjkhwaja railway station in Chandauli, Uttar Pradesh, and travelled to Garhwa in Jharkhand. Covering a distance of 209 km in 5 hours and 10 minutes, it maintained an average speed of 40.5 km per hour. The train was formed by combining three long-haul racks, with ..

Next Story
Infrastructure Energy

UltraTech Launches India’s First On-Site Hybrid RTC Renewable Energy Project

UltraTech Cement has operationalised a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at its Sewagram Cement Works in Gujarat. The first-of-its-kind solution combines bifacial solar modules with trackers, wind energy and battery storage, co-located on-site, to ensure uninterrupted power for cement manufacturing without grid reliance. The project was executed in collaboration with clean energy solutions provider Gentari. Installed as a behind-the-meter system, it is the country..

Next Story
Infrastructure Transport

Patna Metro Trials Successful, Red Line Priority Corridor to Launch This Month

Patna is set to roll out its first metro rail service later this month, with successful trial runs conducted on the Red Line priority corridor, the Patna Metro Rail Corporation announced.On 7 September, a metro train completed a test run between the Patna depot and Bhootnath station. Officials said the trials involved rigorous checks of rolling stock fitness, overhead electrification (OHE), and track alignment and stability to ensure operational safety and performance.The corridor from the New Pataliputra Bus Terminal to Bhoothnath has been designated as the priority stretch and will be the fi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?