Economy
RBI Caps Puducherry Cooperative Bank Withdrawals at ₹5,000
RBI has restricted Puducherry Co-operative Urban Bank’s operations and capped depositor withdrawals at ₹5,000 for six months.
What happened
From the close of business on October 21, 2026, Puducherry Co-operative Urban Bank cannot issue or renew loans, accept fresh deposits, make investments, incur liabilities, or dispose of assets without written RBI approval. Depositors may withdraw up to ₹5,000 from eligible accounts. The directions will remain in force for six months, subject to review.
Why it matters
Depositors face immediate limits on access to funds, while eligible customers can claim deposit insurance of up to ₹5 lakh through DICGC, subject to verification and required consent.
Source: RBI