Relief for City Co-op Bank customers


RBI raises withdrawal limit for depositors to ₹5,000 from ₹1,000

The Reserve Bank of India (RBI) has relaxed restrictions placed on the City Co-operative Bank Ltd., by allowing the depositors to withdraw ₹5,000, the banking regulator said in a statement. On April 17, the RBI has barred the lender from extending fresh loans or making new investment (except government securities) without prior approval and depositors were allowed to withdraw ₹1,000. Such directions are issued when the financial conditions of a lender deteriorate.

Order modified

In a modification to its April order, the RBI on Thursday said, “A sum not exceeding ₹5,000 of total balance in every savings bank account or current account or term deposit account … may be allowed to be withdrawn by depositor.” Shiv Sena MP Anandrao Adsul is the chairman of the co-operative bank, which has 10 branches in Mumbai and Thane.

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

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Printable version | Jan 25, 2020 4:10:05 AM |

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