Account holders of the Kapol Co-operative Bank Ltd in the city were shocked to know that the Reserve Bank Of India has restricted the bank from any working until any directions from the apex banking authority.
According to the directions by the RBI, account holders will not be allowed to withdraw a sum exceeding Rs 3,000 of the total balance held in their savings bank or current account.
The Kapol co-operative bank will, without prior approval in writing from the Reserve Bank, also be not able to grant or renew any loans and advances, make any investment, RBI said in a statement.
The RBI said the directions have been issued from the close of business on March 30, 2017.
The issue of the directions, according to the Reserve Bank, should not, per se, be construed as a cancellation of banking licence by the Reserve Bank.