RBI ups limit on deposit withdrawal for City Co-op Bank

The Reserve Bank of India (RBI) on Thursday increased the limit on deposit withdrawal for customers of City Co-operative Bank to ₹10,000 from ₹5,000.

The RBI had put the lender under restrictions in April 2018 and the withdrawal limit was capped at ₹5,000.

It has now said, “A sum not exceeding ₹10,000 … of total balance in every savings bank account or current account or term deposit account or any other deposit account (by whatever name called); may be allowed to be withdrawn by depositor, provided that wherever such depositor is having liability to the bank in any manner, i.e. either as a borrower or surety, including loans against the bank deposits, the amount may be adjusted first to the relevant borrowal account/s.”

It added that all other conditions will remain unchanged.

“The aforesaid modification by the Reserve Bank of India should not per se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank,” the banking regulator said.