The Reserve Bank of India (RBI) has imposed restrictions on Mumbai-based Mogaveera Co-operative Bank for a period of 6 months, as per news reports.
The directions came into effect from the close of business on June 12, 2026. During this period, depositors can withdraw up to ₹1 lakh from their savings, current or other deposit accounts.
The bank has been directed not to grant or renew loans and advances, make investments, borrow funds, accept fresh deposits, or create new liabilities. The RBI said these restrictions have been imposed in view of the bank's present liquidity position.
The directions will remain under review during the 6-month period.
In its statement, the central bank said it had been engaging with the bank's board and senior management to improve its functioning.
It added that the bank had not taken sufficient steps to address the supervisory issues identified by the regulator, leading to the issuance of the directions.
The RBI clarified that the restrictions should not be treated as cancellation of the bank's banking licence. Mogaveera Co-operative Bank will continue to carry out banking business within the limits specified by the regulator until further instructions are issued or the directions are modified.
The central bank said eligible depositors will be entitled to receive deposit insurance of up to ₹5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC), in accordance with the applicable rules.
The RBI also said it will continue to monitor the bank's position and may revise the directions if required. Depositors seeking additional information have been asked to contact the bank.
The regulatory directions are effective for 6 months from the close of business on Friday, June 12, 2026. The RBI said the bank will continue operations within the prescribed limits during this period.
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Published on: Jun 15, 2026, 12:57 PM IST
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