RBI imposes withdrawal limit of Rs 3,000 on Kapol Bank customers

Customers of Mumbai-headquartered Kapol Co-operative Bank will only be allowed to withdraw up to Rs 3,000 - irrespective of their total balance - according to a Reserve Bank of India directive.

“The Kapol Co-operative Bank will, without prior approval in writing from the RBI, also not able to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose any of its properties or assets except as notified in the RBI directions dated March 30, 2017,” RBI said in a statement on its website.

The directions have been issued in connection with the bank's poor financial health. It does not mean that the bank's licence has been cancelled but restrictions will continue till its financial position improves. The central bank may consider modifications of these directions depending upon circumstances, RBI said.

A copy of the directions is displayed at the bank’s premises for public access.