The RBI on Friday imposed a number of restrictions on Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur, together with on withdrawals, in view of the lender’s worsening monetary place.
However, 99.84 per cent of the depositors are totally coated by the DICGC insurance coverage scheme. Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance coverage scheme, deposits of as much as Rs 5 lakh are insured.
The RBI, in an announcement, stated the restrictions will stay in drive for a interval of six months from the shut of enterprise on May 13, 2022 and are topic to evaluation.
“Considering the bank’s present liquidity position, no amount from the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions…,” it stated.
It additional stated the issuance of the instructions mustn’t per se be construed as cancellation of the banking licence by RBI.
“The bank will continue to undertake banking business with restrictions as stated in the Directions till its financial position improves,” it stated.
The Reserve Bank added that it could think about modifications of the instructions relying upon circumstances.
The financial institution can’t, with out prior approval of RBI, grant or renew any loans and advances, make any funding, incur any legal responsibility, and get rid of any of its properties or property, amongst different restrictions.
Source: www.financialexpress.com”