The Reserve Bank of India (RBI) has extended the restrictions on Karnataka-based Millath Co-operative Bank by three months, till August 8, 2021.

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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.

Further, the central also imposed a withdrawal limit of Rs 1,000 from every savings or current account or any other deposit account.

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