RBI said in the statement that the restrictions imposed by it have come into effect with the closure of banking business on September 25. These will remain in force for six months.
The Reserve Bank of India (RBI) has taken major action against a cooperative bank. The central bank has imposed several restrictions in view of the deteriorating financial condition of Ahmedabad-based Color Merchants Co-op Bank. In which a customer is allowed to withdraw only a maximum of Rs 50,000.
Restrictions will remain in effect for 6 months
RBI said in the statement that the restrictions imposed by it have come into effect with the closure of banking business on September 25. These will remain in force for six months. The central bank said that Color Merchants Co-op Bank can neither give loans nor renew old loans without its prior permission. Apart from this, he has also been barred from making any investment and accepting new deposits.
Ban on withdrawal of more than Rs 50,000
RBI said, a depositor will not be allowed to withdraw more than Rs 50,000 from his total deposits within the bank. Along with this, the central bank said that the account holders of this bank will get deposit insurance benefits from Deposit Insurance and Credit Guarantee Corporation (DICGC) for deposits up to Rs 5 lakh. Customers can contact bank officials for more information regarding this.
However, the central bank said that its orders against Color Merchants should not be seen as cancellation of banking licenses. He said that the bank will continue to operate with these restrictions until its financial condition improves.