Bank Banned: Now withdrawal and deposit from these 3 banks is banned, RBI big action
RBI has imposed restrictions on three banks. They have been barred from doing lending, deposit and other banking business. This action will also affect the customers. Let us find out if you have an account in any of these banks?
Bank Banned: The Reserve Bank of India has shown strictness against three banks. Restrictions have been imposed under Section 35A and 56 of the Banking Regulation Act 1949. All three banks have been ordered to close their business from July 4. Some necessary instructions have been issued. During this time, customers will also face problems. Customers of two banks included in this list will be able to withdraw a limited amount. At the same time, one bank has not been allowed to do so.
This order will continue for 6 months. RBI has not canceled the license of the banks. It has just imposed restrictions for some time. The situation of the banks will be reviewed. The central bank will also issue necessary instructions for amendment. If the situation improves, a decision can also be taken to remove these restrictions. This list includes Innovative Co-operative Urban Bank Limited (Delhi), The Industrial Co-operative Bank Limited (Guwahati) and The Sahakari Bank Limited (Mumbai).
These services will be banned
The three banks will not be able to approve or renew any loan or advance without the prior approval of RBI. They have been barred from any investment, borrowing and other transactions including accepting new deposits. They will also not be allowed to make any payment in discharge of their liabilities and obligations or otherwise. There will also be a ban on entering into any compromise or arrangement. There will also be no permission to sell property or assets. However, banks can spend on some essential work such as salaries of employees, rent, electricity bills etc. Apart from this, permission has also been given to reset off loans against deposits.
Customers will be able to withdraw this much amount
RBI has allowed Innovative Co-operative Urban Bank Limited Delhi and The Industrial Cooperative Bank Limited Guwahati to withdraw up to Rs 35000 from the total amount kept in the bank savings bank or current account or any other account. However, customers of Bhavani Sahakari Bank Limited Mumbai will not get this facility. Every customer has the right to receive deposit insurance claim amount of his deposits up to the monetary limit of Rs 5 lakh under the provisions of DICGC Act 1961.
Why did RBI take this step?
Recently RBI had talks with the board and senior management to improve the functioning of the bank. This step has been taken after the bank did not make concrete efforts to remove supervisory concerns and protect the interests of the bank’s depositors. Instructions have been issued to all three banks on July 3.
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