RBI Action: Reserve Bank of India (RBI) has taken major action against two banks simultaneously. If you also have an account in these banks then read immediately.
The Reserve Bank of India (RBI) keeps a strict eye on all the banks of the country. If any bank does not follow the rules of RBI, then strict action is taken against it (RBI Action). RBI also imposes fine on banks which act arbitrarily. In this series, RBI has now taken major action against two banks. Account holders of one of these banks will now be able to withdraw only Rs 15,000 and account holders of the other bank will be able to withdraw only Rs 10,000. Read which bank is this?
RBI has imposed restrictions on Sarvodaya Co-operative Bank based in Mumbai and National Urban Co-operative Bank Limited based in Pratapgarh, Uttar Pradesh. Know further why such a strict step was taken and what will happen to the customers’ money.
RBI has taken action in view of the deteriorating financial condition of both the banks. Sarvodaya Co-operative Bank customers are allowed to withdraw only Rs 15,000 from their account. At the same time, customers of National Urban Co-operative Bank can withdraw only Rs 10,000. Know further what will happen to the remaining money of the customers.
Depositors will be entitled to claim deposit insurance from Deposit Insurance and Credit Guarantee Corporation (DICGC) only up to Rs 5 lakh of their deposits.
The curbs have come into effect on both the banks under instructions under Section 35A of the Banking Regulations Act, 1949, from the close of business on April 15, 2024. Besides, the Reserve Bank has also made it clear that these guidelines should not be taken as cancellation of banking license.
Banks will continue to conduct banking business with restrictions until their financial condition improves. RBI said that the restrictions will remain in force for six months from the close of business on April 15, 2024.
