RBI has put Aurangabad based Ajantha Urban Co-op Bank placed under Direction with effect from the close of business on August 29, 2023. The bank shall not, without prior approval of RBI conduct certain operations listed in the Directive.
A copy of direction is displayed on the bank’s website / 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the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions, reads a release.
The eligible depositors would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ?5,00,000/- (Rupees five lakh only) in the same capacity and in the same right, from the Deposit Insurance and Credit Guarantee Corporation, under the provisions of Section 18A of the DICGC Act (amendment) 2021, based on submission of willingness by the concerned depositors. The depositors may contact their bank officials for further information.
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 August 29, 2023 and are subject to review.