RBI imposes 6-month withdrawal restrictions on Mogaveera Co-operative Bank

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.

The central bank emphasized that the issuance of these directions does not signify a cancellation of the bank's license. Mogaveera Co-operative Bank will continue to operate under these restrictions until its financial health improves. The RBI will monitor the situation and may modify the directions as needed, prioritizing depositors' interests.

Eligible depositors can claim up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The RBI advised depositors to contact bank officials for further information.