Reserve Bank caps withdrawals at Rs 5,000 in directions on Puducherry Co-operative Urban Bank

21 October 2026

The Reserve Bank of India placed Puducherry Co-operative Urban Bank Ltd under directions from the close of business on 21 October 2026. The directions were issued under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, and will stay in force for six months, subject to review. Depositors may withdraw up to Rs 5,000 from savings, current or other accounts. Without the prior written approval of the Reserve Bank the bank cannot grant or renew loans and advances, make investments, incur liabilities including borrowing, accept fresh deposits or dispose of its properties. Eligible depositors can claim deposit insurance of up to Rs 5,00,000 from the Deposit Insurance and Credit Guarantee Corporation. The Reserve Bank said the directions are not a cancellation of the bank's licence.