new Delhi: Apart from withdrawing money from customers, RBI has banned lending to banks. For this, the bank will now have to take prior permission of RBI. All these restrictions have been imposed by the Reserve Bank from April 8, 2022.
Withdrawals of more than 5,000 are prohibited
RBI has come to this conclusion due to poor financial discipline. Bangalore-based Shushruti Soudha Sahakari Bank Regularity has been banned and its customers have been banned from withdrawing more than Rs 5,000. They will not be able to withdraw more than Rs 5,000 from their savings or current account.
six months ban
The RBI on Thursday issued a directive to ban the bank for the next six months. The situation will be reviewed after six months and further instructions will be given. As per the directive, the bank has to take RBI’s permission before making investments, making payments, accepting fresh deposits and selling assets.
RBI has said that the license of Shushruti Sauharda Sahakari Bank Regulatory has not been cancelled. With the help of these restrictions, the position of the bank will improve. These restrictions can be relaxed when the economic situation improves.