The Reserve Bank of India (RBI) on Friday imposed a slew of restrictions on New Delhi-based Ramgarhia Co-operative Bank in view of the lender’s deteriorating financial condition.
Among other restrictions, Central bank limit has been imposed 50,000 per depositor withdrawal.
“Specifically, an amount not exceeding 50,000 of the total balance in all savings bank or current accounts or any other account of the depositor may be permitted to be withdrawn…,” the RBI said.
Further, the bank is also not permitted to grant or renew any loan, make investments or accept fresh deposits without the prior approval of the RBI.
“With effect from the close of business on July 08, 2022, the Bank shall not, without the prior written approval of the Reserve Bank of India, grant or renew any loans and advances, make any investments, lending of money and acceptance of fresh deposits. will not take any liability including disbursements or agreeing to pay any payment whether in discharge of its liabilities and obligations or otherwise,” RBI said in a release.
The Bank is not permitted to enter into any agreement or arrangement and sell, transfer or otherwise dispose of any of its assets or assets except as notified by RBI.
The Center has further clarified that these instructions to Ramgarhia Sahakari Bank should not be construed as cancellation of banking license by RBI.
The Bank shall continue to carry on banking business subject to the restrictions specified in the Directions till its financial position improves.
The Reserve Bank said that it may consider amending the directions depending on the circumstances.