RBI extends restrictions on this bank by another 3 months
PremiumAs per the directions issued first on May 10, 2019, withdrawals were capped at ₹1,000 from any account. The directions have been periodically extended till now
The Reserve Bank of India (RBI) has extended the restrictions on Karnataka's Millath Co-Operative Bank, Devangere, by another three months till May 7, 2022.
“The Reserve Bank of India is satisfied that in the public interest, it is necessary to extend the period of operation of the Directive DCBS.CO.BSD III.D-12/12.23.096/2018-19 dated April 26, 2019, issued to Millath Co-operative Bank Limited, Davangere, Karnataka, and as modified from time to time, last being vide Directive DOR.MON.D-44/12.23.096/2021-22 dated November 02, 2021. Accordingly, the Reserve Bank of India, in the exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the Directive DCBS.CO.BSD III.D-12/12.23.096/2018-19 dated April 26, 2019, issued to Millath Co-operative Bank Limited, Davangere, Karnataka, as modified from time to time, the validity of which was last extended up to February 07, 2022 vide DOR.MON.D-44/12.23.096/2021-22 dated November 02, 2021, shall continue to apply to the bank for a further period of three months from February 08, 2022 to May 07, 2022, subject to review," the central bank said in a release.
As per the directions issued first on May 10, 2019, withdrawals were capped at ₹1,000 from any account. The directions have been periodically extended till now.
Other terms and conditions of the directives will remain unchanged during the latest three-month extension, RBI said in the press statement.
The directions also include no new loans, new investments or taking on any new liabilities, including borrowing of funds or paying any other liabilities, sans RBI approval.
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