The Reserve Bank of India has instructed Mumbai-based City Co-operative Bank to restrict withdrawals to Rs 1000 per deposit account.
The Reserve Bank of India in a statement said that it has placed the City Co-operative Bank Ltd., Mumbai, Maharashtra, under Directions.
"According to the Directions, depositors will be allowed to withdraw a sum not exceeding ₹ 1000 (Rupees One Thousand only) of the total balance held in every saving bank or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directions," the statement reads.
It also said that without prior approval in writing from the Reserve Bank, the bank will also not be able to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose any of its properties or assets except as notified in the RBI directions dated April 17, 2018.
However, the Reserve Bank said that it may consider modifications of these directions depending upon circumstances.
