RBI Places Mogaveera Co-operative Bank Under Strict Operational Restrictions
Effective June 12, 2026, the RBI has capped withdrawals at Mumbai's Mogaveera Co-operative Bank at ₹1,00,000. Invoking Section 35 A of the Banking Regulation Act, 1949, the regulator has prohibited the bank from issuing loans, accepting fresh deposits, or selling assets without prior approval for a six-month period.
The central bank intervened after the lender failed to address persistent supervisory concerns regarding its liquidity and governance. While the banking license remains valid, the directive freezes most business activities to prevent capital erosion. Key provisions include:
- Insurance Protection: Eligible depositors can claim up to ₹5,00,000 through the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- Operational Exceptions: The bank is permitted to pay essential bills, including employee salaries and rent.
- Monitoring: The RBI will review the bank's financial position periodically to determine if modifications to these directions are necessary.
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