India's central bank on Monday revised certain norms for urban co-operative banks (UCBs), with a view of providing them with greater operational flexibility, while meeting regulatory objectives.

Withdrawals will be available through bank branches and ATMs, but customers cannot exceed the set limit or their available balance, whichever is lower.

With this relaxation, more than 50% of the total depositors will be able to withdraw their entire balances, says RBI

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.

In a partial relief to the depositors of fraud-hit New India Cooperative Bank, the Reserve Bank of India (RBI) has allowed withdrawal of Rs 25,000 with effect from February 27, 2025.

The Reserve Bank of India (RBI) has introduced measures to enhance the operational flexibility of Urban Cooperative Banks (UCBs), allowing them greater freedom in lending without compromising regulatory objectives.

RBI has revised some lending norms for urban co-operative banks, including expanding the definition of small-value loans, hiking real estate exposure limits and provisioning requirements for investment in Security Receipts.