RBI Rule- The Reserve Bank of India (RBI) imposed business restrictions on another cooperative bank. Apart from this, customers have also been banned on withdrawal of more than Rs 5,000 (5,000 withdrawal limit). RBI has been adopting a strict policy against co-operative banks for some time now.
New Delhi. The Reserve Bank of India (RBI) on Monday imposed business restrictions on Babaji Date Mahila Sahakari Bank in Maharashtra. Apart from this, customers have also been banned on withdrawal of more than Rs 5,000 (5,000 withdrawal limit). RBI has been adopting a strict policy against co-operative banks for some time now.
RBI said that after the restrictions come into force, the bank cannot issue fresh loans or accept any fresh deposits without prior approval of RBI after the end of its business on November 8, 2021. Also, no depositor can withdraw more than Rs 5,000 from his account.
Know what RBI said?
RBI said in a statement, “In view of the prevailing liquidity position of the bank, withdrawal of an amount exceeding Rs. However, the customers from whose account the loan installment is deducted, they can be allowed to settle the same subject to the conditions.
RBI also said that its restrictions should not be seen as cancellation of banking licence. RBI said that the bank will continue to do banking business with restrictions till its financial health improves. Further, the Reserve Bank may consider amendments to these instructions from time to time depending on the circumstances.
These restrictions will remain in force for a period of 6 months
RBI said that these restrictions will be applicable for a period of 6 months from the close of business on November 8, 2021. About two weeks ago, the RBI imposed a fine of Rs 90 lakh on Maharashtra’s Vasai Vikas Sahakari Bank for not following certain instructions. At the same time, about a month, RBI imposed a fine of Rs 79 lakh on Apna Sahakari Bank of Mumbai.