RBI imposes restrictions on Malkapur Urban Co-op Bank

The Reserve Bank of India (RBI), imposed several restrictions on customers of Malkapur Urban Co-operative Bank in Maharashtra. The steps were taken after considering the deterioration in the lender’s financial position.

Malkapur Urban Co-operative Bank shall not without prior approval of the RBI renew any loans, make any investment, incur any liability, and disburse any payment, the Reserve Bank said in a statement.

One of the major decisions taken by the RBI on Malkapur Urban Co-op Bank customers is that they won’t be able to withdraw more than Rs 10,000. The decision is imposed on both savings and current account customers.

“In particular, a sum not exceeding Rs 10,000 of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn…,” it added.

The newly announced restrictions will remain in force for six months from the close of business on Wednesday (November 24).