The Reserve Bank of India (RBI) has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months till November 7.
This extension is subject to review, said an RBI statement. The restrictions were last extended till August 8.
“The RBI is satisfied that in the public interest, it is necessary to extend the period of operation of the Directive DCBS.CO.BSD III.D-12 /12.23.096/2018-19 dated April 26, 2019 issued to Millath Co-operative Bank Limited, Devangere, Karnataka,” the statement said.
As per the RBI’s directions, the co-operative bank shall not, without prior approval of RBI in writing a grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise.
The bank would also not enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.
Further, the central bank also imposed a withdrawal limit of Rs 1,000 from every savings or current account or any other deposit account.
The restrictions were first imposed in May 2019 and have been extended thereafter.
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