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Sarvodaya Cooperative Bank: The Reserve Bank of India (RBI) on Monday imposed several restrictions on Mumbai-based Sarvodaya Co-operative Bank in view of its deteriorating financial condition. In this, a limit of Rs 15,000 has been imposed on customers for withdrawal from their account. Eligible depositors will be entitled to receive deposit insurance claim amount up to Rs five lakh of their deposits only from the Deposit Insurance and Credit Guarantee Corporation (DICGC). Along with this, RBI also imposed several restrictions on National Urban Co-operative Bank Limited, based in Pratapgarh, Uttar Pradesh, which also includes a withdrawal limit of Rs 10,000 from accounts.
RBI imposed ban on the bank
The restrictions in the form of directions under Section 35A of the Banking Regulation Act, 1949 on Sarvodaya Sahakari Bank have come into effect from the close of business on Monday (April 15, 2024). Now Sarvodaya Sahakari Bank will not be able to give or renew any loan or advance without the prior permission of the Reserve Bank.
Apart from this, he will not be able to make any investment, incur any liability or make any payment to discharge his liabilities and obligations.
Customers will be able to withdraw this much amount from the account
“Specifically, withdrawal of an amount not exceeding Rs 15,000 out of the total balance in all savings bank or current accounts or any other account of the depositor may be permitted,” the central bank said.
The Reserve Bank of India (RBI) also said that the guidelines issued should not be construed as cancellation of banking licenses by the Reserve Bank.
Action taken against this bank also
The central bank said restrictions under Section 35A of the Banking Regulation Act, 1949 on Pratapgarh-based National Urban Co-operative Bank Ltd are applicable from close of business on April 15, 2024. After this the bank will not make any grant or renewal. To make loans and advances, make any investments, incur any liabilities, or make any payments against its liabilities and obligations without the prior permission of the RBI. Can.
Customers will be able to withdraw Rs 10000
The central bank said that no amount exceeding Rs 10,000 can be allowed to be withdrawn from the total balance in the savings accounts or current accounts or any other account of the depositor of the bank. Along with this, RBI said that these guidelines should not be understood as cancellation of banking license. The bank will continue banking business with restrictions until its financial position improves.
The RBI said these restrictions will remain in place for six months from close of business on April 15, 2024, and will be subject to review.