The Reserve Bank of India (RBI) has taken stern action against banks not adhering to the guidelines. In March, the RBI had fined eight banks for irregularities. Now the Reserve Bank has imposed strict restrictions on the bank based in Bangalore. After the order of the Reserve Bank, its customers will no longer be able to withdraw more than Rs 5,000 from Bangalore-based co-operative bank Shushruti Sauharda Sahakari Bank. Not only this, RBI has also banned the bank from lending and depositing money till further orders.
banned for so long
Due to these restrictions of the Reserve Bank, the customers of the bank will have to face a lot of problems. In such a situation, customers can be worried about the future of their money deposited in the bank. A statement issued by the RBI said that the total amount of all savings accounts, current accounts or any other account of bank depositors cannot be allowed to withdraw more than Rs 5,000.
The Reserve Bank has allowed the bank to conduct banking operations with restrictions till its financial position improves. At present, this ban is for six months.