The Reserve Bank of India (RBI) has put several restrictions on banks. Action is being taken against banks. Violating the rules will lead to cancellation of the bank’s license, heavy fines and restrictions on transactions. The RBI has tightened restrictions on many banks. However, the RBI has said that there is no problem for the customers due to the action taken against the banks.
Reserve Bank of India is cracking down on many banks. Taking action against banks that follow the rules. The banks that violate the rules are subject to cancellation of licenses, huge fines, suspension of transactions etc. RBI is tightening its eyes on many banks. But what kind of problems are consumers facing due to the actions taken by RBI against banks?
In view of the deteriorating financial condition of Mumbai-based Sarvodaya Co-operative Bank, the Reserve Bank of India (RBI) has further tightened its lending norms. At the same time, RBI has imposed several sanctions on National Urban Co-operative Bank Limited, Uttar Pradesh. Under this, now limits have been imposed on account holders of both banks to withdraw their money. You will not be able to withdraw more than the limit. Got permission to withdraw only Rs 15,000 from Mumbai based Sarvodaya Co-operative Bank.
At the same time, customers can withdraw only Rs 10,000 from National Urban Co-operative Bank Limited located in Pratapgarh, Uttar Pradesh. After this limit imposed by RBI, now it is not possible for both banks to grant or renew any loans, advances without RBI approval.
RBI Ban on banks for 6 months
The central bank (RBI) specifically prohibits withdrawal of up to Rs 50,000 from the total balance of all savings bank or current accounts or any other account of the depositor. The Reserve Bank has also released guidelines in this regard. This does not mean that the bank license should not be cancelled. After the imposition of sanctions on co-operative banks, eligible depositors can withdraw Rs. Those eligible to claim their deposits up to Rs 5 lakh are eligible, RBI said. These restrictions will remain in force for 6 months from the close of business on April 15, 2024, RBI said. We will review this from time to time.
Last week also on April 8, RBI took action against Shirpur Merchants Cooperative Bank in Maharashtra. Account holders have set limits for withdrawing money from the bank. The Central Bank took this action keeping in mind the financial situation of the bank. After the RBI order, currently the account holders are not allowed to withdraw money from any current account or savings account in the bank.
