RBI Action: RBI imposed ban on these 3 banks, customers’ tension will increase due to closure of transactions

RBI Action: RBI imposed ban on these 3 banks, customers’ tension will increase due to closure of transactions

RBI has imposed restrictions on three banks. The notification related to this was issued on 30th July. This will also affect the customers. Withdrawal of money will be allowed within the limit. Let us find out if your account is among these?

The Reserve Bank of India has taken strict action against three banks. They have been banned. They have been prevented from doing many things without the permission of RBI. This list includes Sonpeth Nagarik Sahakari Bank Limited (Sonpeth), Lokapavani Mahila Sahakari Bank Niyamitha (Mandya) and Irinjalakuda Town Co-operative Bank Limited. All banks have been ordered to stop business from July 30.

These banks will not be allowed to provide any loan or advance without the written approval of RBI. They have also been prohibited from investing, borrowing, accepting new deposits, distributing any payment, making a settlement, selling property or assets. Apart from this, the central bank has also advised the three banks to issue a copy of this instruction on the bank premises or website.

How long will the ban remain?

RBI has also held talks with the boards and senior management of banks to improve the functioning of the bank. This directive has been issued to address supervisory concerns and protect the bank’s customers. However, this will not be considered as cancellation of banking license. The central bank will review their status for 6 months. A decision to lift the ban can be taken if the situation improves.

What will be the impact on the customers?

Irinjalakuda Town Co-operative Bank Limited:- As per the instructions of RBI, the customers of Irinjalakuda Town Co-operative Bank Limited will not be able to withdraw more than Rs 10,000 from their savings or current account. However, the bank has been allowed to do so in relation to electricity bills, salaries of employees, rent etc.

Lokapavani Mahila Sahakari Bank Niyamitha:- Customers of this bank are allowed to withdraw more than Rs 30,000. This step has been taken in view of the liquidity position of the bank. Permission has been given to adjust the loan against the deposit.

Sonpeth Nagarik Sahakari Bank Limited:- Customers of this bank will not be allowed to withdraw money from the account. For information, let us tell you that under the provisions of DICGC Act 1961, every customer has the right to claim deposit insurance up to Rs 5 lakh.