Withdrawal Limit Fixed at ₹1 Lakh Per Depositor Amid Financial Concerns
Mumbai (Economy India): The Reserve Bank of India (RBI) has imposed a series of restrictions on Mogaveera Co-operative Bank Ltd., Mumbai, citing deterioration in the bank’s financial position. Under the regulatory action, depositors will be allowed to withdraw a maximum of ₹1 lakh from their accounts during the restriction period.
According to an RBI statement, the directions came into effect from the close of business on Friday and will remain valid for a period of six months, subject to review.
Restrictions Imposed to Protect Depositors
The central bank said the measures have been introduced due to concerns regarding the bank’s financial health and are intended to safeguard the interests of depositors while ensuring financial stability.
Under the restrictions:
🏦 Depositors can withdraw up to ₹1 lakh from their accounts.
📉 The bank cannot grant or renew loans and advances without prior RBI approval.
💰 Restrictions have been placed on accepting fresh deposits.
📑 Certain investment and financial transactions will require regulatory approval.
🔍 RBI will continuously monitor the bank’s financial position during the restriction period.
Banking Operations to Continue
The RBI clarified that the restrictions should not be interpreted as the cancellation of the bank’s banking license.
Mogaveera Co-operative Bank will continue to undertake routine banking operations within the limits prescribed by the regulator.
The central bank also emphasized that the directions have been issued in the interest of public confidence and depositor protection.
Deposit Insurance Protection Available
The RBI noted that eligible depositors are entitled to insurance coverage under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme.
Under current regulations, depositors are insured up to ₹5 lakh per depositor per bank, providing an additional layer of protection in case of financial distress.
Periodic Review Planned
The regulator stated that the restrictions will remain in force for six months and may be modified depending on improvements or further deterioration in the bank’s financial condition.
The RBI regularly takes such supervisory actions when cooperative banks face financial stress, with the objective of restoring stability and protecting depositors’ interests.
The RBI’s decision to impose restrictions on Mogaveera Co-operative Bank reflects its ongoing efforts to maintain stability in the banking sector and protect depositors. While customers face temporary withdrawal limits, the availability of deposit insurance and continuous regulatory monitoring are expected to help safeguard their interests during the review period.
(Economy India)
