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.

Withdrawals can be made through branches or ATMs, but the total amount a depositor can withdraw will be capped at Rs 25,000 or the balance available in their account, whichever is lower.

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,

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

In a sigh of relief for irked customers of New India Co-operative Bank, the RBI on Monday permitted withdrawals of up to Rs 25,000 per depositor from the accounts at the troubled co-operative lender,

A former general manager of New India Co-operative Bank, Hitesh Pravinchand Mehta, was allegedly found involved in siphoning ₹122 crore off the lender. The authorities have arrested three people involved in the case as of February 21.

The RBI had placed All-Inclusive Directions (AID) on the bank on February 13, preventing any withdrawals due to concerns over its liquidity and financial stability.

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.