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Business News/ Industry / Banking/  RBI imposes restrictions, withdrawal caps on 4 banks. Details here
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RBI imposes restrictions, withdrawal caps on 4 banks. Details here

RBI has imposed restrictions, withdrawal caps on 4 co-operative banks

RBI has imposed restrictions for six months due to the deteriorating financial conditions of these banks. (MINT_PRINT)Premium
RBI has imposed restrictions for six months due to the deteriorating financial conditions of these banks. (MINT_PRINT)

The Reserve Bank of India (RBI) on Friday imposed various restrictions on on four cooperative banks. The restrictions have been imposed for six months and it includes cap on withdrawals for the depositors. The central ban k of India has imposed restriction keeping note of deteriorating financial positions of these four co-operative banks. The four banks being put under restrictions by the RBI are are Ramgarhia Co-operative Bank, New Delhi; Sahebrao Deshmukh Co-operative Bank, Mumbai; Sangli Sahakari Bank, Mumbai; and Sharada Mahila Co-operative Bank Limited, Tumkur, Karnataka. These restrictions have been put under the Banking Regulation Act, 1949.

As per the RBI directives, restriction became effective after the closure of business hours on Friday i.e. 8th July 2022. The RBI issued notice in this regard and said that without prior approval of the RBI, these four banks cannot grant or renew any loans, make investments or accept fresh deposits.

Under the RBI's directions, a cap has also been imposed on withdrawals by depositors of these four co-operative banks.

In the case of Ramgarhia Co-operative Bank and Sahebrao Deshmukh Cooperative Bank, the cap is 50,000 per depositor, while in the case of Sangli Sahakari Bankthe cap is 45,000 per deposit.

In the case of Sharada Mahila Co-operative Bank, a depositor can withdraw a maximum of 7,000.

In separate statements, the central bank of India said that the issue of directions "should not per se be construed as a cancellation of banking license" by the RBI.

In each case, the Reserve Bank of India said it may consider modifications of the directions depending upon circumstances.

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Published: 09 Jul 2022, 09:41 AM IST
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