Bank Withdrawal Limit: New Cap Set for Withdrawals – Know the Daily Limit

The Reserve Bank of India (RBI) has allowed withdrawals from New India Cooperative Bank, providing relief to thousands of account holders. Following the announcement, long queues were seen outside bank branches on Thursday morning.

RBI’s Decision on Withdrawal Limits

The RBI has granted permission to New India Co-operative Bank Limited, Mumbai account holders to withdraw up to ₹25,000 from their deposited funds. This decision comes after nearly two weeks of strict banking restrictions, including a complete ban on withdrawals imposed due to financial instability concerns. The RBI had first allowed withdrawals of up to ₹25,000 on February 24.

Partial Relief for Account Holders

After assessing the bank’s cash position, the RBI has decided to partially lift restrictions. Key updates include:

• More than 50% of depositors will be able to withdraw their entire balance.

• The remaining account holders can withdraw up to ₹25,000 or their full balance if it is lower.

• Withdrawals are available through bank branches and ATMs.

Financial Irregularities Discovered in the Bank

Serious financial irregularities have been reported at the Prabhadevi branch of New India Cooperative Bank. Investigations revealed that the bank, which had a vault storage capacity of ₹10 crore, falsely recorded a cash reserve of ₹122.028 crore on the day of RBI’s inspection.

₹122 Crore Fraud Under Investigation

The Economic Offenses Wing (EOW) of Mumbai Police is investigating a ₹122 crore fraud in the bank. Three individuals, including two former top officials, have been arrested so far. Key findings include:

• RBI Inspection on February 11 – The central bank’s team visited the corporate office branch in Prabhadevi and discovered ₹122 crore missing from the vault.

• Mismatched Records – The corporate office branch showed a balance of ₹133.41 crore across the Prabhadevi and Goregaon branches, while records at Prabhadevi falsely indicated ₹122.028 crore in cash reserves.

• Actual Cash in Vault – Despite the ₹122 crore entry, only ₹60 lakh was found in the vault, which has a maximum storage capacity of ₹10 crore.

The RBI continues to monitor the situation, and further actions may be taken based on the ongoing investigation. For now, account holders can access limited funds while the authorities work on stabilizing the bank’s financial condition.