RBI caps withdrawals at Rs 5,000 at the Puducherry Co-operative Urban Bank

27 October 2026

The Reserve Bank of India has issued Directions to Puducherry Co-operative Urban Bank Ltd. under Section 35A read with Section 56 of the Banking Regulation Act, 1949. Depositors may withdraw up to Rs 5,000 from savings, current or other accounts. Without the prior approval of the RBI the bank cannot grant or renew loans and advances, make investments, incur liabilities including borrowing funds, or accept fresh deposits. The Directions took effect from the close of business on October 21, 2026 and remain in force for six months, subject to review. The RBI said the Directions should not be construed as cancellation of the bank's banking licence, and that eligible depositors can claim deposit insurance of up to Rs 5,00,000 from the Deposit Insurance and Credit Guarantee Corporation. The bank has been told to display an advisory notice at all branches and extension counters stating the maximum DICGC cover and the withdrawal limit, and to open help desks for grievance redressal.