In a major supervisory action, the Reserve Bank of India (RBI) has imposed stringent restrictions on Mumbai-based Mogaveera Co-operative Bank Ltd., citing persistent supervisory concerns and inadequate corrective measures by the bank’s management.
Under directions issued on June 11, 2026, and effective from the close of business on June 12, the bank has been barred from granting or renewing loans, making investments, accepting fresh deposits, raising borrowings, or disposing of assets without prior RBI approval.
To safeguard depositors’ interests, RBI has permitted withdrawals of up to Rs 1 lakh per depositor from savings, current, or other accounts, subject to specified conditions. The bank, however, will be allowed to meet essential expenses such as employee salaries, rent, and electricity bills.
RBI said it had been continuously engaging with the bank’s Board and senior management, but the lack of concrete efforts to address regulatory concerns necessitated the action.
Eligible depositors will be entitled to deposit insurance coverage of up to Rs 5 lakh through DICGC. The restrictions will remain in force for six months and are subject to review.
