Finance

RBI puts curbs on Malkapur Urban Co-op Bank; caps withdrawals at Rs 10,000

The RBI on Wednesday imposed several restrictions, including a Rs 10,000 cap on withdrawals, on Malkapur Urban Co-operative Bank in Maharashtra due to deterioration in its financial position.

Malkapur Urban Co-operative Bank shall not without prior approval of the RBI renew any loans, make any investment, incur any liability, and disburse any payment, the Reserve Bank said in a statement.

“In particular, a sum not exceeding Rs 10,000 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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn…,” it added.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 restrictions would remain in force for six months from the close of business on Wednesday.

The central bank, however, added that the issue of the directions to the co-operative banks should not per se be construed as a cancellation of banking license.

“The bank will continue to undertake banking business with restrictions till its financial position improves,” it said.

The Reserve Bank may consider modifications of these directions depending upon circumstances, the statement said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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