RBI action on bank: Reserve Bank of India (RBI) has clamped down on another bank in Maharashtra. This time, ‘Independence Co-operative Bank Limited’ in Nashik, Maharashtra has been subject to several restrictions regarding withdrawals. Account holders of this bank can no longer withdraw their money.
New Delhi: RBI action on bank: Reserve Bank of India (RBI) has clamped down on another bank in Maharashtra. This time, ‘Independence Co-operative Bank Limited’ in Nashik, Maharashtra has been subject to several restrictions regarding withdrawals. Account holders of this bank can no longer withdraw their money. This ban has been imposed for 6 months in the beginning.
99 percent account holders’ money secured
The RBI has imposed these restrictions in view of the current bad condition of the bank. However, the Reserve Bank has said that 99.89 account holders are fully protected under the Deposit Insurance and Credit Guarantee Corporation -DICGC Insurance Scheme, that is, their money deposited in the bank will not be lost.
Restriction will remain in force for 6 months
According to the insurance scheme, every account holder with DICGC is entitled to receive a deposit insurance claim up to Rs 5 lakh of his total deposits. That is, the account holders who deposited the amount up to 5 lakh rupees in the bank, they do not need to panic, they will get all their money back. This restriction on the co-operative bank will remain in force for the next 6 months.
Account holders will not be able to withdraw money
Regarding this action, the RBI says that this step has been taken in view of the current cash condition of the Operative Bank Limited Bank to the Independent, now the depositors have to withdraw any amount from the savings or current account or from any account. Will not be allowed If the customer wants, then he can settle the loan in lieu of deposit, but in this also some conditions have to be followed.
The bank cannot offer a new loan
Apart from this, the RBI has imposed many more restrictions on the bank. The Chief Executive Officer (CEO) of the bank cannot sanction any loan without RBI approval, neither can renew any loan, neither can invest nor make any payment. The RBI has said that despite the restrictions, the operative bank will continue to do its banking business until the situation improves. It should not be deemed to be a cancellation of banking license. The Reserve Bank said that the guidelines can be changed according to the situation.
