According to the instructions of the Reserve Bank, this bank will neither be able to give any loan or renew the loan without the permission of RBI. Also, the bank will neither make any investment nor make any payment or consent to payment.
New Delhi. The Reserve Bank of India (RBI) has appointed Lakshmi Sahakari Bank Ltd. Many curbs have been put in Solapur (Laxmi Coop Bank Solapur). The central bank has taken this step in view of the deteriorating financial condition of the bank.
The withdrawal limit for the customers of the bank from their accounts has been fixed at Rs 1,000. The Reserve Bank said in a statement on Friday that the restrictions imposed under the Banking Regulation Act, 1949 will remain in force for six months after the closure of business hours on November 12, 2021. During this the restrictions will be reviewed.
RBI gave instructions
According to the instructions of the Reserve Bank, Lakshmi Sahakari Bank will neither be able to give any loan or renew the loan without the permission of the central bank. Also, the bank will neither make any investment nor make any payment or consent to payment.
In particular, withdrawal of an amount not exceeding one thousand rupees of the total balance in all savings bank or current accounts or any other account of the depositor cannot be permitted, RBI said.
RBI has also imposed restrictions on this bank
The Reserve Bank of India further said that the issue of instructions by RBI should not be considered as cancellation of banking license. The Bank will continue to do banking business with restrictions till its financial position improves. Let us tell you that earlier also RBI had imposed similar restrictions on Babaji Date Mahila Sahakari Bank, Yavatmal, Maharashtra.
What did RBI say on loan installment?
RBI said that the customers from whose account the loan installment is deducted, they can be allowed to settle it under the conditions. Along with this, the bank clearly said that these restrictions imposed on the bank should not be seen as cancellation of banking license. The Bank will continue to do banking business with restrictions till its financial health improves.
