RBI imposed restrictive directions on Mogaveera Co-operative Bank Ltd., Mumbai on June 11, 2026, effective from close of business June 12, 2026. Bank cannot grant loans, accept fresh deposits, or make investments without prior RBI approval. Depositor withdrawals capped at Rs 1 lakh per account. Directions issued under Section 35A read with Section 56 of Banking Regulation Act, 1949, valid for six months due to supervisory concerns and liquidity issues.

This action represents RBI's supervisory enforcement mechanism against financially distressed cooperative banks. Under Section 35A of Banking Regulation Act 1949, RBI can impose operational restrictions without cancelling banking license - a middle ground between normal operations and complete shutdown. The Rs 1 lakh withdrawal limit protects remaining liquidity while allowing depositors access to funds. DICGC insurance coverage of Rs 5 lakh per depositor provides additional protection. The six-month validity period indicates RBI expects either recovery or further action. This follows RBI's pattern with weak cooperative banks like PMC Bank, where similar restrictions preceded resolution processes. The directive affects depositor confidence in cooperative banking sector, which serves primarily local communities and small businesses. RBI's continuous engagement with bank management before imposing restrictions demonstrates graduated supervisory response. The bank can continue essential operations like salary payments and utilities, ensuring minimal disruption while addressing financial irregularities. This case highlights regulatory challenges in cooperative banking supervision, where state and central oversight sometimes creates gaps in effective monitoring and timely intervention.