RBI puts restrictions on Malkapur Urban Co-op Bank; caps withdrawals at Rs 10,000

Nov 24, 2021

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MUMBAI: The RBI on Wednesday imposed a number of restrictions, together with a Rs 10,000 cap on withdrawals, on Malkapur City Co-operative Financial institution in Maharashtra attributable to deterioration in its monetary place.
Malkapur City Co-operative Financial institution shall not with out prior approval of the RBI renew any loans, make any funding, incur any legal responsibility, and disburse any cost, the Reserve Financial institution stated in a press release.
“Particularly, a sum not exceeding Rs 10,000 of the full steadiness throughout all financial savings financial institution or present accounts or another account of a depositor, could also be allowed to be withdrawn…,” it added.
The restrictions would stay in pressure for six months from the shut of enterprise on Wednesday.
The central financial institution, nevertheless, added that the problem of the instructions to the co-operative banks mustn’t per se be construed as a cancellation of banking license.
“The financial institution will proceed to undertake banking enterprise with restrictions until its monetary place improves,” it stated.
The Reserve Financial institution might take into account modifications of those instructions relying upon circumstances, the assertion stated.



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