RBI Action: RBI has taken action on another bank and has imposed withdrawal limit on withdrawal of money from the bank for its account holders.
RBI Action: 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 accounts. Eligible depositors will be entitled to receive deposit insurance claim amount up to Rs five lakh on their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC) only.
What restrictions have been imposed on the bank?
The restrictions in the form of instructions under Section 35A of the Banking Regulation Act, 1949 on Sarvodaya Co-operative 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 any loan or advance without the prior approval of the Reserve Bank, nor will they be renewed. Further he will not be able to make any investment, incur any liability, or make any payment, whether in discharge of his liabilities and obligations.
What did RBI say on its action
“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 not be permitted,” the central bank said. The Reserve Bank also said that the guidelines issued should not be taken as cancellation of banking license by the Reserve Bank.
RBI keeps taking action continuously
Last week also, on April 8, RBI took action against Shirpur Merchants Cooperative Bank of Maharashtra and banned the withdrawal services of the bank. The Central Bank had taken this step in view of the financial condition of the bank. After the order of RBI, customers are not allowed to withdraw money from any current account or savings account in the bank.
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