Restrict Withdrawals To Rs. 1,000 Per Account: RBI To Mumbai-Based Co-operative Bank

The Reserve Bank of India has placed curbs on the business activities of Mumbai-based City Co-operative Bank and also said that customers of the cooperative bank will not be allowed to withdraw more than Rs. 1,000 per deposit account. In a statement released on April 18, the RBI said that it has “placed The City Co-operative Bank Ltd, Mumbai under directions. According to the directions, depositors will be allowed to withdraw a sum not exceeding Rs. 1,000 of the total balance held in every saving bank or current account or any other deposit account”.
The City Co-operative Bank will also have to take prior approval from the central bank before it can accept fresh deposits, disburse loans, make any investment, or borrow funds, the RBI said.

The central bank however said that the “issue of the directions by the Reserve Bank should not, per se, be construed as cancellation of banking licence by the Reserve Bank. The bank will continue to undertake banking business with restrictions till its financial position improves.”