Reserve Bank of India: The Reserve Bank of India has imposed several curbs on Nagar Urban Co-operative Bank Ltd., located in Ahmedgar, Maharashtra. Under these restrictions, the withdrawal limit for the customers of the bank from their accounts has been fixed at Rs 10,000. That is, the customers of the bank will no longer be able to withdraw more than Rs 10,000 from their own account. In view of the bad financial condition of the bank, RBI has taken this step.
The curbs will remain in force for 6 months
These restrictions under the Banking Regulation Act (Applicable to Co-operative Societies), 1949 will remain in force for a period of six months from the close of business hours on December 6, 2021 and will be reviewed.
Will not be able to give loan and advance
The central bank has said that the bank will neither give any loan nor give any advance without its permission, apart from this it will not be able to renew any loan. The bank will also be prohibited from making any investment, taking any kind of liability, payment and transfer or sale of assets.
Will not be able to withdraw more than 10,000 cash
The Reserve Bank said that the customers of the bank will not be able to withdraw more than Rs 10,000 from their savings bank or current accounts. A copy of the Reserve Bank’s order has been placed in the bank premises, so that customers can get information about it. However, the central bank has clarified that these restrictions should not be construed as cancellation of banking licences.