RBI imposes restrictions on Mogaveera Co-operative Bank, Bombay

The Reserve Bank of India (RBI) has imposed restrictions on Mogaveera Co-operative Bank Ltd., Bombay, effective from the close of business on June 12, 2026. Under directives issued on June 11, 2026, the bank cannot grant loans, accept fresh deposits, or make investments without prior RBI approval. Depositors can withdraw up to ₹1,00,000 from their accounts, subject to conditions outlined in the directive.

The restrictions were necessitated due to the bank's inability to address supervisory concerns and protect depositor interests despite RBI's engagement with its management. Essential expenditures like employee salaries and utility bills are permitted under the directive.

Eligible depositors can claim up to ₹5,00,000 under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, following due verification. Detailed information is available on the DICGC website or through bank officials.

RBI clarified that these restrictions do not amount to cancellation of the bank's license. The bank will continue operations under these limitations for six months, subject to review. RBI will monitor the situation and modify directives as needed to safeguard depositors.

This move highlights RBI's commitment to ensuring financial stability and depositor protection in the cooperative variable banking sector, which has faced challenges in recent years.