Key facts
- The Reserve Bank of India has imposed restrictions on Mogaveera Co-operative Bank.
- Withdrawals are capped at Rs 1 lakh per depositor.
- The bank is prohibited from granting new loans, making investments, or accepting fresh deposits.
- These restrictions are effective for six months and are subject to review.
- The RBI cited the bank's deteriorating financial position and liquidity issues.
The Reserve Bank of India (RBI) has imposed significant restrictions on Mogaveera Co-operative Bank in Mumbai for a period of six months, citing its deteriorating financial position and liquidity issues. Effective from Friday's business closure, depositors will be limited to withdrawing a maximum of Rs 1 lakh from their savings, current, or any other accounts.
In addition to withdrawal caps, the cooperative bank is prohibited from granting or renewing any loans and advances, making investments, or incurring any liabilities, including borrowing funds and accepting fresh deposits. The RBI stated that these measures were necessitated by the bank's lack of concrete efforts to address supervisory concerns and protect depositors' interests.