RBI increases withdrawal limit to Rs 5000 for depositors of City Co-operative Bank, Mumbai

New Delhi, Dec 28 (KNN) The Reserve Bank of India (RBI) has relaxed the withdrawal limit for depositors of City Co-operative Bank Ltd, Mumbai by increasing the limit from Rs 1000 to Rs 5,000.

In April 2018, amid weakening of financial position of the cooperative bank, RBI imposed certain restriction on it, including the cash withdrawal limit not exceeding Rs 1000 of total balance in saving or current account.

With regard to withdrawal limit of bank, RBI has modified its April directives and issued new directives, in which the central bank extended the limit from Rs 1000 to Rs 5000.

“A sum not exceeding Rs 5,000/ of total balance in every savings bank account or current account or term deposit account or any other deposit account (by whatever name called); may be allowed to be withdrawn by depositor, provided that wherever such depositor is having liability to the bank in any manner, i.e. either as a borrower or surety, including loans against the bank deposits, the amount may be adjusted first to the relevant borrowal account/s,” RBI said in a release.

It, however, added that the modification "should not per-se be construed" to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank.