RBI: Big news for bank customers! RBI has banned this bank, now you will not be able to do any transaction

RBI stated, “Keeping in view the present money place of the bank, no quantity can be allowed to be withdrawn from the full stability in all of the financial savings accounts or present accounts or any different account of the depositor.

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Mumbai. The Reserve Bank of India (RBI) on Tuesday imposed a number of restrictions on ‘The Konark Urban Co-operative Bank’ primarily based in Ulhasnagar, Maharashtra, together with withdrawal of cash. These restrictions have been imposed on the bank in view of its poor monetary situation. Eligible depositors will be entitled to obtain deposit insurance coverage declare quantity up to Rs 5 lakh from their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The restrictions on Konark Urban Co-operative Bank underneath Section 35A of the Banking Regulation Act, 1949 got here into impact from the shut of enterprise on April 23, 2024 (Tuesday).

The restrictions imposed on the bank embody that the bank can’t sanction or renew any loans and advances, make any investments, switch any liabilities or eliminate any of its property with out the permission of the RBI. Could.

Why was there a ban on withdrawing cash?

The central bank stated, “Keeping in view the present money place of the bank, no quantity might be permitted to be withdrawn from the full stability in all of the financial savings accounts or present accounts or any different account of the depositor however to regulate the loans. Is allowed.” RBI stated that the ban on the lender ought to not be interpreted as cancellation of banking license. It stated that the bank will proceed to conduct banking operations with restrictions till its monetary situation improves.

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