New Delhi: The Reserve Bank of India (RBI) has banned People's Co-operative Bank for 6 months. The ban has been imposed on the bank due to weak financial position. Due to this restriction, now the bank will not be able to take new loans and deposits for the next 6 months. Peoples Co-operative Bank is located in Kanpur and Yes Bank is promoted. The RBI has said that at present, the depositor of this co-operative bank will not be given the facility of withdrawal.

A statement issued on Thursday by the RBI said that after the closure of business on June 10, 2020, the People's Co-operative Bank would be required to renew any new loan or old dues, make any kind of investment and accept new deposits. For this, written permission has to be obtained from the Reserve Bank. The RBI has said that the co-operative bank has been prohibited from selling, transferring or disposing of any property. The central bank stated that in particular, the total balance in all savings bank or current account or any other account of the depositor cannot be allowed to be withdrawn.

The RBI has stated that these instructions will remain in effect until six months after the close of business on June 10 and will be subject to review. However, RBI clarified that this directive should not be taken as revoking the banking license of the cooperative bank. The bank will continue to conduct banking business with restrictions until its financial condition improves.

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