RBI said, “Keeping in view the current cash position of the bank, no amount can be allowed to be withdrawn from the total balance in all the savings accounts or current accounts or any other account of the depositor.
Mumbai. The Reserve Bank of India (RBI) on Tuesday imposed several restrictions on ‘The Konark Urban Co-operative Bank’ based in Ulhasnagar, Maharashtra, including withdrawal of money. These restrictions have been imposed on the bank in view of its poor financial condition. Eligible depositors will be entitled to receive deposit insurance claim amount up to Rs 5 lakh from their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). 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).
The restrictions imposed on the bank include that 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. Could.
Why was there a ban on withdrawing money?
The central bank said, “Keeping in view the current cash position of the bank, no amount may be permitted to be withdrawn from the total balance in all the savings accounts or current accounts or any other account of the depositor but to adjust the loans. Is allowed.” RBI said that the ban on the lender should not be interpreted as cancellation of banking license. It said that the bank will continue to conduct banking operations with restrictions until its financial condition improves.
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