The sensational announcement by the Reserve Bank: Restriction on transactions with 5 banks!
Posted on: 25/Feb/2023 1:48:20 PM
The Reserve Bank of India has imposed restrictions on financial transactions with 5 specie banks!
In India, just like the Public Sector Banks and Private Sector Banks, the Cooperative Banks have also been functioning under the Rules and Regulations of the Reserve Bank of India. However, when violations happen in the cooperative banks, the Reserve Bank of India will intervene and impose various regulations!
As such, the Reserve Bank of India has now imposed certain new restrictions on 5 cooperative banks!
Accordingly, the freshly imposed restrictions apply to these 5 banks - HCBL Cooperative Bank, Cooperative City Bank, Aadarsh Mahima Nagari Sahakari Bank, Maryadit, Simsha Shankara Bank Niyamitha, and Shankar Rao Mohite PatilShahakari Bank
NOTE THAT THE ABOVE 5 BANKS CANNOT ENTRERTAIN ANY NEW DEPOSITS OR UNDERTAKE LENDING OF LOANS WITHOUT DUE PERMISSION FROM THE RESERVE BANK OF INDIA!
Further, restrictions have been imposed by the Reserve Bank of India for the account holders of these 5 banks to withdraw money!
The main reason for the recent restriction by the Reserve Bank of India on these banks is the poor financial status of these 5 banks. Further, the account holders who are disturbed by this development may submit the necessary documents and take up to Rs. 5 Lakhs as coverage.
RESERVE BANK OF INDIA HAS FURTHER ADVISED THAT THE CITIZENS MUST NOT MISUNDERSTAND THE ABOVE DEVELOPMENTS LEADING TO WORRY ABOUT THEIR SAVINGS AND THERE IS NO REMOVAL OF THE 5 BANKS` RIGHTS!
Until the financial status of the above 5 banks improves, they have to function with the above restrictions imposed by the Reserve Bank of India until the financial status improve!
In fact, in recent times, the Reserve Bank of India has been registering the financial weakness of some of the cooperative banks and has been taking various actions on this aspect!
Further, the Reserve Bank of India has ordered the withdrawal of the rights of certain Banks!
