RBI extends restrictions on THIS bank by 3 months; sets withdrawal cap

India’s apex bank Reserve Bank of India (RBI) has given an extension to the restrictions on a bank by three months and has further directed it not to write or renew any loans without its approval. This is going to affect the customers of this bank as there is a cap on the withdrawal limit too. This bank will also not be able to further make any kind of investment. 

The RBI has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months, till August 8, 2021.

As per RBI`s directions, the co-operative bank shall not, without prior approval of RBI in writing a 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 the discharge of its liabilities and obligations or otherwise.

The bank would also not enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.

Further, the centre also imposed a withdrawal limit of Rs 1,000 from every savings or current account or any other deposit account.

The restrictions were first imposed in May 2019 and have been extended thereafter. It was last extended till May 7, 2021.