The Central Reserve Bank (RBI) has taken significant action against the Bengaluru-based cooperative bank, National Co-operative Bank Limited, by imposing strict restrictions.
As part of these measures, customers of the bank will face operational challenges as they will no longer be able to withdraw more than Rs 50,000 from their accounts.
Restrictions Imposed by RBI:
The restrictions imposed by RBI on the National Co-operative Bank will be in effect for the next 6 months.
During this period, the bank will not be allowed to disburse new loans or renew existing ones.
Additionally, making any new investments is also prohibited for the bank.
Furthermore, the bank is not permitted to borrow funds, accept fresh deposits, distribute payments under any obligations, enter into new agreements, or sell its assets.
Impact on Customers:
RBI’s instructions explicitly state that no depositor will be allowed to withdraw an amount exceeding Rs 50,000 from any of their accounts, including current, savings, or any other type of account held with the bank.
License Unaffected:
Despite the stringent restrictions, RBI clarified that the bank’s license is not being cancelled.
The National Co-operative Bank will continue to operate under these limitations until its economic condition improves.
The Reserve Bank may reconsider these instructions based on the bank’s situation in the future.
