RBI Imposes Restrictions on Puducherry Co-operative Urban Bank for Six Months, Caps Cash Withdrawals at Rs 5,000:

The RBI has imposed six-month restrictions on Puducherry Co-operative Urban Bank, including a Rs 5,000 cash withdrawal limit, amid financial concerns.

Depositors Eligible for Rs 5 Lakh Insurance

Saloni Kumari

Oct 22, 2026

Last update on Oct 22, 2026

The Reserve Bank of India (RBI) has levied several restrictions on Puducherry Co-operative Urban Bank for a period of six months, such as putting a limit of Rs 5,000 on cash withdrawals, in view of the lender’s deteriorating financial position.

This action was taken by the apex bank on Wednesday, October 21, 2026, and these restrictions are subject to review. According to an RBI statement, eligible depositors will be allowed to claim deposit insurance of upto Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

The Central Bank has collaborated with the Board and Senior Management of Puducherry Co-operative Urban Bank to enhance its functions while issuing 'Directions' under Section 35A (read with Section 56) of the Banking Regulation Act, 1949.

A key point to be noted here is that despite these restrictions by the RBI, the license of the concerned bank has been cancelled, and banking operations will continue subject to the restrictions.

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].