RBI imposed strict restrictions on 4 banks, now the problems of customers will increase

The Reserve Bank of India (RBI) has taken major action against four co-operative banks in the interest of customers. Keeping in mind the deteriorating financial condition of these four cooperative banks, RBI has imposed various restrictions. These four banks are the Ramgarhia Co-operative Bank of Delhi, the Sahebrao Deshmukh Co-operative Bank of Mumbai and the Sharda Mahila Co-operative Bank of Sangli Co-operative Bank, Karnataka.

Six months ban: According to the information given by RBI, a total of six months ban has been imposed on banks, which is effective from 8 July 2022. These restrictions are imposed under the Banking Regulation Act, 1949.

What is the restriction: RBI issued notice in this regard and said that without prior approval of RBI, these four banks cannot grant or renew any loan. A limit has also been imposed on withdrawals by depositors of these four co-operative banks as per the directions of RBI.

Kis Ki Kitni Limit: According to RBI, a limit of Rs 50,000 per depositor has been set in the case of Ramgarhia Co-operative Bank and Sahebrao Deshmukh Co-operative Bank. At the same time, in the case of Sangli Co-operative Bank, this limit is Rs 45,000 per deposit. In case of Sharda Mahila Co-Operative Bank a depositor can withdraw a maximum of Rs.7,000.

RBI also clarified that the instructions should not be construed as cancellation of banking licence. RBI said that it may consider amending the directions depending on the circumstances.