Puducherry Co-op Bank: Is Your ₹5 Lakh Safe?
RBI has put curbs on Puducherry Co-operative Urban Bank. Depositors can take out only ₹5,000 each for now. The bank's licence is not cancelled, and eligible depositors can claim insurance of up to ₹5 lakh through DICGC.
Depositors and borrowers of Puducherry Co-operative Urban Bank Ltd, especially anyone with savings or current account balances they need to withdraw.
That is the most you can withdraw from your account at this bank for now.
Key Takeaways
Check your total balance and loans at Puducherry Co-operative Urban Bank, since only ₹5,000 can be withdrawn for now.
Ask bank officials how to give your willingness for the deposit insurance claim of up to ₹5 lakh.
Visit www.dicgc.org.in for details on how DICGC pays insured deposits.
RBI has put curbs on Puducherry Co-operative Urban Bank. Depositors can take out only ₹5,000 each for now. The bank's licence is not cancelled, and eligible depositors can claim insurance of up to ₹5 lakh through DICGC.
Here's what happened: RBI placed restrictions on Puducherry Co-operative Urban Bank from October 21, 2026, citing weak efforts to fix supervisory concerns and protect depositors. Without RBI's written permission, the bank cannot give or renew loans, accept fresh deposits, make investments or make most payments. Each depositor can withdraw at most ₹5,000, and the restrictions run for six months, subject to review.
What you should do: Check your total balance and loans at Puducherry Co-operative Urban Bank, since only ₹5,000 can be withdrawn for now. Ask bank officials how to give your willingness for the deposit insurance claim of up to ₹5 lakh. Visit www.dicgc.org.in for details on how DICGC pays insured deposits.
Pro tip: The bank may adjust your loan against your deposit under the RBI order's conditions, so ask how this affects any loan you hold there.
Written by GoCredit from the official Reserve Bank of India document cited below. Every figure is checked against that document. This is general information, not legal or financial advice.
Questions people ask
How much can I withdraw from Puducherry Co-operative Urban Bank?
The bank has been told to allow withdrawals of no more than ₹5,000 from a depositor's savings, current or any other account, because of its present liquidity position.
Is my money insured at Puducherry Co-operative Urban Bank?
Eligible depositors can receive insurance of up to ₹5 lakh from DICGC in the same capacity and right. They must submit willingness and pass verification.
Has RBI cancelled Puducherry Co-operative Urban Bank's licence?
No. RBI says the directions should not by themselves be read as licence cancellation. The bank continues banking within the restrictions until its financial position improves.
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References
- [1]“Directions under Section 35 A read with Section 56 of the Banking Regulation Act, 1949 – Puducherry Co-operative Urban Bank Ltd” Reserve Bank of India · 21 Oct 2026
Official source. GoCredit wrote this explainer from the document above, and every figure in it is checked against that document automatically. The worked example is calculated by GoCredit. How we write news
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