The Reserve Bank of India (RBI) has imposed restrictions on The Tiruvalla Urban Co-operative Bank Ltd., Tiruvalla, Pathanamthitta, Kerala, effective from the close of business on October 8, 2026, citing concerns over the bank’s liquidity position and depositor protection.

Under the directions issued on October 7, 2026, the bank cannot permit withdrawals from savings, current or other depositor accounts. It is also prohibited from granting or renewing loans, making investments, accepting fresh deposits or undertaking specified financial transactions without prior written approval from the RBI. The bank may, however, incur expenses for essential items such as employee salaries, rent and electricity bills, subject to the prescribed conditions.

Eligible depositors will be entitled to deposit insurance coverage of up to Rs. 5 lakh per depositor, in the same capacity and right, from the Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to applicable conditions and verification.

The RBI clarified that the restrictions do not amount to cancellation of the bank’s banking licence and that the bank may continue operations subject to the specified conditions. The directions will remain in force for six months from the close of business on October 8, 2026, and are subject to review.