look news india
The Reserve Bank of India (RBI) on Tuesday imposed several restrictions on Konark Urban Cooperative Bank based in Ulhasnagar, Maharashtra, including restrictions on fund withdrawal. These restrictions have been imposed on the bank in view of its poor financial condition. Eligible depositors can avail deposit insurance from Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs. Deposit amount up to Rs 5 lakh will be eligible for insurance claim amount. The restrictions on Konark Urban Co-operative Bank under Section 35A of the Banking Regulation Act, 1949 came into effect from the close of business on April 23, 2024 (Tuesday).
Loan will not be approved
With the restrictions imposed the bank cannot sanction or renew any loans and advances, make any investments, transfer any liabilities or dispose of any of its assets without the permission of the RBI. .
Money cannot be withdrawn from the account
“Keeping in view the current cash position of the bank, withdrawals to offset credit from the total balance in all savings accounts or current accounts or any other account of the depositor are not permitted,” the central bank said. The RBI said the restrictions on the lender should not be construed as cancellation of its banking license.