The Reserve Bank has increased the withdrawal limit for depositors of City Co-operative Bank Ltd, Mumbai, to Rs 5,000. Amid weakening of the financial position of the cooperative bank, the RBI in April had imposed several restrictions on it, including limiting the withdrawal by depositors to Rs 1,000.
Now the RBI has modified its April directions in relation to the bank. “A sum not exceeding Rs 5,000 of total balance in every savings bank account or current account or term deposit account or any other deposit account…may be allowed to be withdrawn by depositor…,” the RBI said in a release. It, however, added the modification “should not per-se be construed” to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank.
The City Co-operative Bank, without RBI’s prior approval, cannot grant or renew any loans and advances, make any investment, and sell, transfer or otherwise dispose any of its properties or assets except as notified in the RBI directions of April 17.