RBI imposes restrictions on Musiri Urban Co-operative Bank

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. 

• 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