According to reports, the Reserve Bank of India (RBI) imposed several restrictions on Mumbai-based Raigad Sahakari Bank on Monday, July 18, which include withdrawal cap of INR 15,000 per customer.
This development came due to deterioration in the financial condition of the lender. The restrictions will remain in force for a period of six months.
Releasing an official statement, RBI said that in particular, a sum not exceeding ₹15,000 of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn.
The bank will continue to undertake banking business with restrictions till its financial position improves, it added.
In addition, the cooperative bank, without the prior approval of RBI, cannot issue loans, make any investment, accept fresh deposits. However, clarifying further it stated that the directions issued to the bank should not be construed as cancellation of banking license.
Moreover, the Reserve Bank also said it may consider modifications of the directions depending upon circumstances.
Besides, in another statement, the RBI mentioned that a penalty of INR 6 lakh was levied on Shri Chhatrapati Rajarshi Shahu Urban Co-operative Bank Limited, Beed, for contravention of provisions related to 'Frauds - Classification and Reporting'.
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