Reserve Bank of India Extends Restrictions on Karnataka's Millath Co-Operative Bank by Another 3 Months

Reserve Bank of India Extends Restrictions on Karnataka's Millath Co-Operative Bank by Another 3 Months The Reserve Bank of India has prolonged the restrictions on Millath Co-Operative Bank, Devangere, in Karnataka for another three months, until May 7, 2022. "The Reserve Bank of India is satisfied that it is necessary to extend the period of operation of Directive DCBS.CO.BSD III.D-12/12.23.096/2018-19 dated April 26, 2019, issued to Millath Co-operative Bank Limited, Davangere, Karnataka, and as amended from time to time, the most recent being Directive DOR.MON.D-44/12.23.096/2021-22 dated November 02, 2021, in the public interest." As a result, the Reserve Bank of India, in the exercise of its powers conferred on it by sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the Directive DCBS.CO.BSD III.D-12/12.23.096/2018-19 dated April 26, 2019, issued to Millath Co-operative Bank Limited, Davangere, Karnataka, as modified from time to time, whose validity was last extended up to February 07, 20 "Subject to review," the central bank said in a statement. Via DOR.MON.D-44/12.23.096/2021-22 dated November 02, 2021, shall continue to apply to the bank for a further three months from February 08, 2022 to May 07, 2022." Withdrawals from any account were capped at $1,000 under the first set of instructions released on May 10, 2019. Until recently, the guidelines have been extended on a regular basis. The instructions' other terms and conditions will remain unchanged throughout the new three-month extension, according to the RBI press release. No new loans, new investments, or taking on any new liabilities, including borrowing funds or paying off other debts, are permitted without RBI clearance.