RBI imposes restrictions on Musiri Urban Co-operative Bank

March 03, 2023
Current Context: RBI imposed restrictions on Musiri Urban Co-operative Bank because of its deteriorating financial condition. The bank cannot grant loans, make investments, or disburse payments without RBI’s approval. 
RBI imposes restrictions on Musiri Urban Co-operative Bank
  • The restrictions on the lender will remain in force for six months from the close of business on March 3 and are subject to review, the RBI said in a statement.
  • The RBI said that these directions should not be construed as a cancellation of its banking license.
  • The bank will continue to undertake banking business with restrictions until its financial position improves.
  • The restrictions include a cap of Rs 5,000 on withdrawals by individual customers, a ban on granting or renewing loans and advances, making any investments or incurring any liability without prior approval of RBI.
  • The bank has been facing liquidity issues and has been unable to meet its depositors’ demands5 The RBI said that these directions should not be construed as a cancellation of its banking license. The bank will continue to undertake banking business with restrictions until its financial position improves.

Question:

Q.1 When did RBI impose restrictions on Musiri Urban Co-operative Bank? 
a. March 1, 2023 
b. March 2, 2023 
c. March 3, 2023
d. March 4, 2023

Free Exam Resources

Useful material to support your preparation, revision and exam planning.

Continue on BankExamsToday

Revise notes, practice questions and resume anytime.

Meet your mentor

From the Founder

Ramandeep Singh, founder of BankExamsToday

Ramandeep Singh

Banking Educator · Former Banker

Former banker and educator helping aspirants prepare for banking promotion and specialist officer exams with focused, practical guidance.

14+
Years' experience
5,000+
Selections
Ex-BoB
Banking experience