RBI imposes restrictions, withdrawal limits on 4 co-operative banks – Times of India

Mumbai: Reserve Bank On Friday, in view of the deteriorating financial condition of the four co-operative banks, several restrictions, including a cap on withdrawal, were imposed for depositors.
Banks under which restrictions or directions banking regulation act1949 Ramgarhia Co-operative Bank, New Delhi has been established; Sahebrao Deshmukh Cooperative Bank, Mumbai ; Sangli Cooperative BankMumbai; and Sharada women’s co-operative Bank Limited, Tumkur, Karnataka.
Issuing directions under the Banking Regulation Act, 1949, the Reserve Bank said in a statement, “The restrictions came into force after the close of business on Friday and will remain in force for six months.”
Among other things, four banks cannot do without prior permission reserve Bank of IndiaGiving or renewing a loan, making an investment or accepting a new deposit.
A cap has also been imposed on withdrawals by depositors under the instructions.
In the case of Ramgarhia Co-operative Bank and Sahebrao Deshmukh Co-operative BankThe cap is Rs 50,000 per depositor, while it is Rs 45,000 in the case of Sangli Sahakari Bank.
The maximum amount a depositor can withdraw in Sharda Mahila Sahakari Bank is Rs 7,000.
In separate statements, the central bank said the issue of directions by the RBI “should not be treated as cancellation of banking licence”.
In each case, the Reserve Bank said it may consider modification of the directions depending on the circumstances.