Reserve Bank of India issued certain Directions to Harihareshwar Sahakari Bank Limited, Wai, Satara, whereby, as from the close of business on May 31, 2022, the bank was restricted from doing many operations.
A copy of the Direction is displayed on the bank’s premises for perusal by interested members of the public. 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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions. However, 99.59 per cent of the depositors are fully covered by the DICGC insurance scheme.
The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license of the said bank by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves. RBI may consider modification of these Directions depending upon circumstances.
These Directions shall remain in force for a period of six months from the close of business on May 31, 2022 and are subject to review.