India, April 13 -- The Reserve Bank of India (RBI) has imposed strict operational restrictions on Motiram Agrawal Jalna Merchants Co-operative Bank, Jalna, citing liquidity concerns.
Under the directions effective April 10, 2026, the bank has been barred from granting or renewing loans, making investments, accepting fresh deposits, or disbursing payments without prior RBI approval. Depositors are also restricted from withdrawing funds due to the bank's current liquidity position, though loan set-offs against deposits are permitted under specified conditions.
The RBI stated that the action follows inadequate efforts by the bank's management to address its financial stress despite prior engagement. However, the central bank clarified that t...