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The Economic Times

Business

RBI imposes restrictions on Puducherry Co-op Urban Bank, caps withdrawals

Reserve Bank of India Insurance

Mumbai, The Reserve Bank on Wednesday imposed several restrictions on Puducherry Co-operative Urban Bank, including capping of withdrawals by a customer at Rs 5,000, in view of the deteriorating financial position of the lender.

The restrictions will remain in force for six months from the close of business on Wednesday (October 21, 2026) and are subject to review, the Reserve Bank of India (RBI) said in a statement. Eligible depositors would be entitled to receive a deposit insurance claim amount of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

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