RBI caps deposit withdrawal from ailing National Co-operative Bank at Rs 50,000
Jul 25, 2023
Mumbai (Maharashtra) [India], July 25 : The Reserve Bank of India (RBI) has imposed certain restrictions on Bengaluru-based ailing The National Co-operative Bank Ltd and capped deposit withdrawal at Rs 50,000 per account.
The bank shall not grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets, RBI said in its directions.
“In particular, a sum not exceeding ₹50,000 (Rupees Fifty thousand only) of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn…,” it added.
The issue of such directions, the RBI said, should not be construed as cancellation of banking license.
“The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances,” RBI said.
The restrictions will remain in force for a period of six months.
