RBI Bank: The Reserve Bank of India has imposed some restrictions on 5 cooperative banks today in view of the deteriorating financial condition. Let’s know the complete details about it.
Big news of big action on banks by the Reserve Bank of India (RBI) is coming out. RBI has imposed some restrictions on 5 cooperative banks of the country on Friday. This also includes the withdrawal limit from the bank. The Reserve Bank says that this restriction has been imposed in view of the deteriorating financial condition of these banks. Know what else RBI has said about this.
Business restrictions on banks
RBI has imposed business restrictions on 5 cooperative banks from 24 February 2023 citing weak financial condition. RBI said that without the prior approval of the central bank, it cannot accept fresh deposits or give any kind of loan. RBI has imposed partial deposit withdrawal restrictions on 3 of these banks and complete restrictions on the other two.
Bank operations will continue
RBI says that, eligible depositors of the bank will be entitled to receive deposit insurance amount up to Rs 5 lakh. The issue of RBI instructions should not be taken as cancellation of banking license by RBI. These banks can continue banking operations with restrictions till their financial condition improves. Earlier, while taking action against the weak co-operative banks of the country, RBI has even canceled the permits of their banks.
Ban imposed on these banks
These banks are HCBL Co-operative Bank Ltd, Uravakonda Co-operative Town Bank Ltd, Adarsh Mahila Nagari Sahakari Bank Maryadit, Shimsha Sahakara Bank Niyamitha and Shankarrao Mohite Patil Sahakari Bank Limited (Shankarrao Mohite Patil Sahakari Bank Ltd).
Reason behind the action
Disciplinary action is taken on banks from time to time by RBI. Action is taken on the banks for violating the rules and for other reasons. Recently fine has also been imposed on some nationalized banks. Many types of shortcomings have been seen in their functioning. That’s why the central bank has imposed a heavy fine on them.
