RBI allows customers to withdraw only 1000 rupees in 6 months from this cooperative bank

Jan 16 2020 06:00 PM
RBI allows customers to withdraw only 1000 rupees in 6 months from this cooperative bank

Recently, after the Punjab and Maharashtra Co-operative Bank and Bangalore-based Sri Guru Raghavendra Sahakara Bank, the Reserve Bank of India has tightened its grip on another cooperative bank. The RBI has banned Kolkata-based Kolkata Co-operative Bank Limited. From 10 January 2020 to 9 July 2020, customers of this bank will be able to withdraw only 1 thousand rupees for 6 months. According to the RBI website, 'The Reserve Bank of India in the public interest exercised the powers vested under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (AACS), the Kolkata Women Co-operative Bank Limited, Kolkata, West Bengal was issued a directive by the end of business on 9 July 2019, which was valid till 9 January 2020. The Reserve Bank of India has now extended the period of the directive for the next 6 months from 10 January 2020 to 9 July 2020 in the public interest. A copy of the directive has been displayed for public viewing in the bank's premises.

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License not canceled: Further, the Reserve Bank of India said that the above instructions issued by it should not be seen as cancellation of the license granted to the bank. The bank will continue banking business with restrictions until its financial condition improves. Depending on the circumstances, the Reserve Bank of India may consider amending these directions from time to time.

Ban was imposed on another co-operative bank: This week RBI also imposed various restrictions on Shri Guru Raghavendra Sahkari Bank in Bangalore. Customers of the bank will be able to withdraw only 35 thousand rupees from the account. This private sector bank cannot offer any new loan for the next 6 months without RBI permission. It will not make any investment during this time without permission.

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Customers will be able to withdraw only 35 thousand rupees: However, the RBI has not canceled the license of Shri Guru Raghavendra Sahkara Bank. These restrictions are in force on the bank since the work ceased on January 10. Account holders can withdraw only 35 thousand rupees from the amount deposited in any type of bank account. However, the RBI has not said what is the time frame for the withdrawal of the money.

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