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.

This announcement comes just over a week after the central bank prohibited the bank from issuing new loans, dissolved its board and took control owing to 'supervisory concerns.'

The RBI has allowed New India Co-operative Bank customers to withdraw up to Rs 25,000 from their deposits following a review of the bank's liquidity.

India's central bank will need to inject at least another 1 trillion rupees ($11.54 billion) into the banking system by March-end as durable liquidity remains in a deficit despite a recent cash infusion,

With this relaxation, more than 50% of the total depositors can withdraw their entire balances, and the remaining depositors can draw up to ₹25,000 from their deposit accounts.

RBI relaxes restrictions on New India Co-operative Bank, allowing depositors to withdraw up to ₹25,000 from February 27.

The Reserve Bank of India (RBI) has imposed several restrictions on New India Cooperative Bank, including a withdrawal limit of ₹25,000 per depositor. This decision comes as the bank faces continuous financial losses.

The Reserve Bank of India has relaxed restrictions on New India Co-operative Bank, allowing withdrawals up to Rs 25,000, effective February 27, 2025. This follows an assessment of the bank's liquidity position.

In a move which can alleviate the concerns of many account holders, the Reserve Bank of India (RBI) has allowed depositors of New India Co-operative Bank Limited, Mumbai, to withdraw up to Rs 25,000 from their accounts.