The Reserve Bank of India (RBI) has extended the restrictions on a bank by three months and has asked it to not to write or renew any loans without its approval. The move will impact customers of this bank as the RBI has put a cap on withdrawal limit too. The bank in question will also not be able to make any new investment. 

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The RBI has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months, till August 8, 2021, said news agency IANS. The central bank also imposed a withdrawal limit of Rs 1,000 from every savings or current account or any other deposit account. 
 
As per RBI`s directions, the co-operative bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise. 
 
The bank would also not enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets. 
 

The restrictions were first imposed in May, 2019 and have been extended thereafter. It was last extended till May 7, 2021.