RBI puts restriction on Mumbai's City Co-op bank; limits withdrawal to Rs 1000/ 6 months

After the news came to light, bank’s customers flocked at its Girgaon branch and protested against the bank. Worried about their money with the bank, customers reached the branch late at night.

Mumbai: In the wake of current cash-crunch situation in the country, the Reserve Bank of India on Wednesday imposed a restriction on City co-operative bank. As per RBI order, this bank’s customers cannot withdraw more than Rs 1,000 in 6 months. The order came after the bank failed to payback customers’ loan, resulting in increase in its NPA. After the news came to light, bank’s customers flocked at its Girgaon branch and protested against the bank. Worried about their money with the bank, customers reached the branch late at night. The restriction was imposed by RBI in December 2017, but the bank kept its customers in dark. The bank has around 10 branches in Mumbai, in which there are around 91,000 account holders. The bank is owned by Shivsena MP Anandrao Vithoba Adsul. On being questioned about RBI order, Adsul said “The bank has been running from 75 years with people’s faith and will ensure that their money is safe”. People on the other hand are angry that why weren’t they informed before hand, so that they could have withdrawn cash beforehand.