The Reserve Bank imposed several restrictions, including a cap on withdrawals for the depositors on four cooperative banks for six months, given a decline in their financial positions.
The banks on which restrictions have been imposed under the Banking Regulation Act, 1949 are Ramgarhia Co-operative Bank, New Delhi; Sahebrao Deshmukh Co-operative Bank, Mumbai; Sangli Sahakari Bank, Mumbai; and Sharada Mahila Co-operative Bank Limited, Tumkur, Karnataka.
Under the directions, a cap has also been imposed on withdrawals by depositors. Among other things, the four banks cannot grant or renew any loans, make investments or accept fresh deposits, without prior approval of the RBI.
In the case of Ramgarhia Co-operative Bank and Sahebrao Deshmukh Cooperative Bank, the cap is Rs 50,000 per depositor, while it is Rs 45,000 in the case of Sangli Sahakari Bank. A depositor in Sharada Mahila Co-operative Bank can withdraw a maximum of Rs 7,000.
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