Big setback! RBI imposes restrictions on 3 cooperative banks; Know how it affects customers
With imposition of restrictions on Jaiprakash Narayan Nagari Sahakari Bank, Basmatnagar, depositors will not be able to withdraw funds from their accounts, the central bank said in a statement.
The Reserve Bank has imposed several restrictions, including on the withdrawal of funds, on three cooperative banks in view of their deteriorating financial condition.
With imposition of restrictions on Jaiprakash Narayan Nagari Sahakari Bank, Basmatnagar, depositors will not be able to withdraw funds from their accounts, the central bank said in a statement.
In another statement, it said that depositors of The Karmala Urban Co-operative Bank, Solapur, can only withdraw up to Rs 10,000 from their accounts.
The RBI has also imposed restrictions on Durga Co-operative Urban Bank, Vijayawada. Its customers can withdraw up to Rs 1.5 lakh from their deposits.
The restrictions imposed on the three banks under the Banking Regulation Act, 1949 the Reserve Bank would remain in force for six months and are subject to review.
As part of the restrictions, the two cooperative banks cannot grant loans, make any investment, incur any liability -- including borrowal of funds and acceptance of fresh deposits, disburse or dispose of properties or assets.
The RBI said the issue of directions to the three lenders should not per se be construed as cancellation of banking license. The banks will continue to undertake banking business with restrictions till their financial position improves.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
10:01 AM IST