The Reserve Bank of India has modified its directive in the case of the Mumbai-based The City Co-operative Bank, allowing its depositors to withdraw a sum not exceeding Rs 5,000 of the total balance in every savings bank or current account or any other deposit account, against Rs 1,000 earlier.
The withdrawal is subject to the condition that wherever such depositor has a liability to the bank in any manner -- either as a borrower or surety, including loans against bank deposits -- the amount may be adjusted first to the relevant borrowal account/s, the RBI said in a statement.
According to the statement, The City Co-operative Bank Ltd was placed under directions by the RBI from close of business on April 17, 2018. The validity of the directions was extended from time to time, with the last directive dated October 15, 2018 extending the directions up to April 17, 2019, subject to review.
The central bank underscored that the modification in the directive should not per-se be construed to imply that it is satisfied about an improvement in the financial position of the bank.