New India Cooperative Bank News

Post Modified on : 25 February 2025

Relief for Depositors: RBI Allows Withdrawals from New India Co-operative Bank

If you have money stuck in the troubled New India Co-operative Bank, there’s some good news. The Reserve Bank of India (RBI) has stepped in, allowing depositors to withdraw up to ₹25,000 from their accounts starting Thursday, February 27, 2025.

After carefully reviewing the bank’s financial condition, the RBI, in consultation with the administrator, decided to ease restrictions. This move is a big relief for account holders who have been worried about accessing their hard-earned savings.

According to the RBI, this decision will allow more than 50% of the depositors to withdraw their entire balances, while others will at least be able to access up to ₹25,000 from their deposit accounts.

This step aims to reduce financial stress for customers while the authorities work towards stabilizing the bank. If you’re a depositor, make sure to check with your bank branch for further details on the withdrawal process.

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What Happened to New India Co-operative Bank?

Imagine waking up one morning to find out you can’t withdraw your own money from the bank. That’s exactly what happened to customers of New India Co-operative Bank, leaving them in shock and panic. The Reserve Bank of India (RBI) imposed strict restrictions on the Mumbai-based bank, including a six-month ban on withdrawals, raising concerns about its financial health.

Videos circulating online show worried customers gathering outside bank branches, desperately seeking answers. Many are struggling to figure out how to pay their bills, EMIs, and daily expenses with their money now locked away.

On February 13, after business hours, the RBI barred the new india co-operative bank from issuing new loans, making investments, or borrowing money, citing financial and supervisory concerns. While the exact reasons remain unclear, the move is part of the RBI’s broader effort to address financial instability in smaller banks.

Customers Caught Off Guard

For many, the announcement came as a complete shock.

Seema Waghmare, a distressed customer, shared:
“We deposited money just yesterday, and no one informed us about this. Now they’re saying we’ll get our money in three months. We have EMIs to pay—how are we supposed to manage?”

Another long-time customer, Bhanumati, expressed frustration:
“The bank didn’t notify us properly. Who checks their phone instantly? I’ve had an account here for over 30 years. I was planning to open a Fixed Deposit (FD), but luckily, I didn’t get the time to do it.”

Looking for a more stable banking option? Explore some of the best cooperative banks in India.