The RBI has imposed a withdrawal limit of Rs 1,000 from every savings or current account as well as any other deposit account in this bank. The restrictions were first imposed in May 2019.
Reserve Bank of India
The Reserve Bank of India (RBI) has extended the restrictions on Karnataka-based Millath Co-operative Bank for three months till August 8, 2021. According to the director of the Reserve Bank of India, the co-operative bank will not be able to renew any kind of loan or renew it without the prior approval of the RBI. With this, it will not make any investment nor will it be able to borrow money nor will it be able to approve new deposits.
It is also not allowed any kind of disbursement. According to RBI directives, the bank will not enter into any agreement or arrangement nor will it be able to sell or transfer any of its assets.
There is a ban from May 2019
Apart from this, the central has imposed a withdrawal limit of Rs 1,000 from every savings or current account as well as any other deposit account in this bank. The restrictions were first imposed in May 2019, but were subsequently extended. It was last extended till 7 May 2021.
These banks have also been banned
Explain that the RBI keeps monitoring the financial condition of banks and takes strict steps if needed. Earlier, RBI had banned Guna’s Garha Co-operative Bank Ltd in February 2021.
According to these restrictions, the management of the bank cannot make any kind of grant, issue a new loan nor renew the loan without the written approval of the Reserve Bank. Customers of this bank will not be able to withdraw more than Rs 50,000.
Earlier, on February 19, a co-operative bank in Karnataka, Deccan Urban Co-operative Bank Limited, was banned for giving new loans, before this, Independent Co-operative Bank Limited was also banned in Nashik, Maharashtra.
(With IANS input)
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