The Reserve Bank of India (RBI) has banned another co-operative sector bank. Actually, Nashik’s Independence Co-operative Bank Limited has been banned by the RBI
According to a news agency, this action has been taken by the RBI as a precaution due to the financial situation of the bank being fragile. After the ban by RBI, bank account holders will no longer be allowed to withdraw money. That is, the account holders will not be able to withdraw money.
At the same time, about 99.88 percent account holders of the Independence Co-operative Bank are eligible for the insurance cover of Deposit Insurance and Credit Guarantee Corporation. In this insurance cover scheme, bank account holder is provided insurance cover on deposits up to 5 lakhs.
But Independence Co-operative Bank has been banned by RBI for 6 months. This order has come into force since 10 February. The RBI has issued an order regarding the ban on the bank.
In which the account holders of the bank will not be allowed to deposit and withdraw money in savings or current account, given the current situation of the Independence Co-operative Bank. Along with this, the RBI has said in its order that the account holders can repay the loan under certain terms and conditions.
Bank officials will also not have the right to make new investments, pay large amounts and sanction loans. RBI has also clarified this. RBI has clearly stated that until the financial condition of the bank does not improve, these restrictions will continue.