After putting restrictions on withdrawal from New India Co-operative Bank, the Reserve Bank of India (RBI) has decided to allow depositors of the bank to withdraw up to Rs 25,000 per depositor with effect from February 27, 2025.
With this relaxation more than 50% of the total depositors will be able to withdraw their entire balances. In a circular on Monday, the banking regulator said that 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may use the branch as well as ATM channel of the bank for this withdrawal, however, aggregate amount that can be withdrawn will be ₹25,000 per depositor or the balance available in their account whichever is lower.
The RBI on 13 February had imposed an All Inclusive Directions (AID) on New India Co-operative Bank Limited, Mumbai, and the bank was directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor.
The regulator had also superseded the bank’s Board and appointed an Administrator -- Shreekant, former Chief General Manager of State Bank of India -- and a Committee of Advisors (CoA).
The regulator also reconstituted the Committee of Advisors (CoA) to the Administrator effective from February 25, 2025. The CoA will now consists of Ravindra Sapra, former General Manager, State Bank of India; Ravindra Tukaram Chavan, former Deputy CGM, Saraswat Co-operative Bank Ltd; Anand M Golas, Chartered Accountant.
“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 regulator said in the circular.
It must be noted that economic offences wing (EOW) of the Mumbai Police recently arrested Hitesh Praveenchand Mehta, a former general manager and head of accounts at the now-crippled New India Cooperative Bank late Saturday evening for allegedly embezzling a whopping Rs 122 crore from the treasury of the lender during 2020-2025 from the two key branches.
The arrest follows an FIR filed by the Dadar Police earlier in the day which later transferred the case to the EOW, which also raided Mehta’s residence and seized certain documents.
Based on the complaint filed by the bank’s now sacked chief executive officer Devarshi Ghosh, a case was registered earlier in the day at Dadar police station. The case was then transferred to the EOW for further investigation, which found that the misappropriation of funds began soon after the pandemic.