Reserve Bank of India has placed Shushruti Souharda Sahakara Bank Niyamita, Bangalore, under Direction from the close of business on April 07, 2022.
As a result, the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse, etc.
A copy of Direction has been displayed on the bank’s premises for perusal by interested members of the public. In particular, a sum not exceeding Rs 5,000 (Rupees Five Thousand only) of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn subject to the conditions stated in the above RBI Directions.
The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances.
These Directions shall remain in force for a period of six months from the close of business on April 07, 2022 and are subject to review.
