RBI extends curbs on Mumbai-based Co-operative bank for 6 months

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Published: April 29, 2020 5:03 PM

The Reserve Bank in October 2018 had barred the bank from granting or renewing any loan for six months and later extended the curbs twice.

The RBI had also put restrictions on withdrawals from the bank.The RBI had also put restrictions on withdrawals from the bank.

The Reserve Bank on Wednesday extended restrictions imposed on city-based The Needs of Life Co-op Bank Ltd for another six months till October 31.

The Reserve Bank in October 2018 had barred the bank from granting or renewing any loan for six months and later extended the curbs twice. The bank was allowed to continue to undertake banking business with restrictions till “its financial position improves”.

The RBI had also put restrictions on withdrawals from the bank. The restrictions were to end on Wednesday.

In an order, the central bank said the directive issued by it on October 26, 2018 “shall continue to apply to the bank for a further period of six months from April 30, 2020 to October 31, 2020”.

It also added that extension and/or 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.

In another statement, the RBI said restrictions on Madgaum Urban Co-operative Bank Ltd, Margao, Goa too have been extended by three months till August 2.

The restrictions were to end on May 2, 2020.

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