 "Urban cooperative banks' business size may be capped at Rs 20,000 cr")
The board of Abhyudaya Co-operative Bank, which was superseded by the Reserve Bank of India (RBI) without imposing any restrictions, such as a cap on deposit withdrawal, is because the lender maintains a statutory liquidity ratio (SLR) much higher than mandated.
“There was comfort since the bank has excess SLR, meaning any depositors who come to withdraw money should not have any problem. Currency chests were also kept open to meet any requirements. However, it was not required as everything went off smoothly,” said a source familiar with the development.
According to sources, governance was the main issue the bank
