(Reuters) – India’s central bank said on Monday it would allow depositors of troubled New India Co-operative Bank to withdraw up to 25,000 rupees (about $290) from their accounts.
The RBI on Feb. 13 barred the lender from issuing new loans, suspended deposit withdrawals for six months and appointed an administrator, citing supervisory concerns and the lender’s liquidity position.
New India Co-operative Bank had outstanding deposits of 24.36 billion rupees as of March 31, 2024, and advances of 11.75 billion rupees.
The Reserve Bank of India (RBI), which superseded the small lender’s board earlier this month, said on Monday the decision to allow withdrawals would help more than half of the account holders.
Reuters reported last week that the RBI was working on a plan to allow depositors to make special withdrawals for personal and medical emergencies.
($1 = 86.6880 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Devika Syamnath)
