Four cooperative banks were subject to a number of limitations on Friday by the Reserve Bank of India (RBI). The limits, which include a ceiling on depositor withdrawals, have been in place for six months.
The central bank of India has placed restrictions in light of the poor financial situation of these four cooperative banks. Sangli Sahakari Bank Mumbai, Ramgarhia Co-operative Bank New Delhi, Sahebrao Deshmukh Co-operative Bank Mumbai and Sharada Mahila Co-operative Bank Limited Tumkur Karnataka, are the four banks that the RBI has placed under limitations. These restrictions have been put under the Banking Regulation Act, 1949.
According to instructions from the RBI, the limitation took effect on Friday, July 8, 2022, after business hours had ended. The RBI issued a notice in this respect and stated that these four banks were not permitted to extend or renew any loans, make investments, or take new deposits without prior RBI approval. A limit has also been imposed on withdrawals by depositors of these four cooperative banks in accordance with instructions from the RBI.
The maximum deposit is 50,000 in the cases of Ramgarhia Co-operative Bank and Sahebrao Deshmukh Co-operative Bank and 45,000 in the case of Sangli Sahakari Bank. A depositor’s maximum withdrawal amount at Sharada Mahila Co-operative Bank is 7,000.
The Reserve Bank of India stated that based on the situation in each case, it may consider changing the instructions.
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