Case Brief
What Happened
The Reserve Bank of India modified and extended the existing Directions issued to Madgaum Urban Cooperative Bank Ltd., Margao, Goa under Section 35A read with Section 56 of the Banking Regulation Act, 1949. The bank had already been under directions from May 02, 2019, with a withdrawal cap of ₹5,000 per deposit account. In this release, RBI increased the permitted withdrawal amount to ₹30,000 per depositor account, subject to adjustment of any liabilities owed to the bank, and required funds needed for depositor payments to be maintained in escrow and/or earmarked securities. RBI also extended the validity of the directive for six more months, from November 03, 2019 to May 02, 2020, while stating that all other terms and conditions would remain unchanged.