Rupee Bank customers can withdraw up to 25000

Rupee Bank customers can withdraw up to 25000

The Reserve Bank of India has allowed depositors to withdraw up to Rs 20,000 from their savings/current account with Rupee Co-operative Bank.

The move will benefit over six lakh bank customers. But if a particular depositor owes any money to it (loan repayment), the sum would be adjusted first.

About 79% or 4,86,402 depositors of the now beleaguered bank have under Rs 25,000 in deposits. The move is likely to benefit those whose money has been stuck in the bank for over three years now.

So, far, depositors were only allowed to withdraw Rs 1,000. In exceptional (hardship) cases, they were allowed to withdraw up to Rs 1 lakh, subject to verification of proof of hardship. The RBI also decided to grant the bank another extension of six months till August 21, 2016. The current round of extension was to expire on February 21.

The bank was put under directions on February 22, 2013 because of its deteriorating financial health. It has a deposit base of over 6,16,631 depositors and their deposit aggregate is Rs 1,525 crore. Over 95% of the depositors have less than Rs 1 lakh balance, insured under the Deposit Insurance and Credit Guarantee Corporation scheme.

Earlier this month, an inquiry committee listed out names of 69 bank employees - some retired or dead now - allegedly responsible for the bank's trouble.